Standard Chartered profits fall 20% in "disappointing" first half

26th Jun 2014 09:17

Standard Chartered boss Peter Sands has admitted that the emerging markets-focused bank experienced a "disappointing first half" with revenues and profits both lower than last year's.He said that the company faced difficult trading conditions across the global financial markets during the first six months of 2014, and group revenues will be down by a "mid single-digit percentage" on last year. At constant currency rates, this decline eases to a "low single-digit percentage".Operating profits are expected to be down around 20% on what the company labelled as a strong first half in 2013.While it expects growth in the second half, adjusted profits for the 2014 financial year will be "down on 2013".StanChart said markets such as China and Africa continue to grow income well, but this has been offset by weaker performance in other regions including India, Korea and Singapore.Costs, while said to be "well controlled", have been slightly higher than last year and low impairments have risen by a "high-teens percentage". Other costs include $75m relating to a valuation impairment of "certain strategic investments".In terms of divisions, income in Financial Markets is the "main challenge across the group" and down 20% year-on-year. Revenues in Transaction Banking, Principal Finance and Retail Products are also expected to have fallen, Corporate Finance income was flat, while growth was seen in Wealth Management and Asset and Liability Management.The shares were down 3.1% at 1,218p following the statement at 09:32.BC