Standard Chartered keeping lid on costs

4th May 2011 07:07

Asian markets-focused banking group Standard Chartered released an upbeat trading statement covering the first quarter in which it said its Consumer and Wholesale banking divisions had started the year in fine form.The group is seeing double digit income growth in comparison with the first quarter of last year, with Consumer Banking making a larger contribution this time round, "as it continues to make progress in its strategic repositioning. "The group is keeping a tight grip on costs with headcount levels at the end of March down slightly on end-2010 levels. Expenses are broadly in line with the run rate seen in the second half of 2010, and although cost/income jaws - the gap between the growth in costs and income - are negative when compared to the first quarter of 2010, they are significantly narrower than seen for the full year 2010.On the consumer banking side there has been steady growth on both sides of the balance sheet since the end of the year. Liability margins in the first quarter have shown resilience, whilst asset margins have continued to see very slight further pressure when compared to the second half of 2010.The wholesale banking business has had a strong start to 2011 with client income above the run rate for the first half of 2010. Own account income for the first quarter was very strong, with double digit growth over the first quarter of 2010. Client income continues to contribute over 80% of total Wholesale Banking income. Peter Sands, group chief executive, commented, "Standard Chartered has enjoyed an excellent start to 2011 with good momentum in both businesses. We continue to benefit from the disciplined execution of our strategy and we remain very well positioned in dynamic markets with strong fundamentals" ---jh