Standard Chartered reports strong second quarter growth

26th Jun 2013 10:42

Standard Chartered said its income for the first half of the year is expected to grow at a mid single digit rate following a strong second quarter.The financial services company reported an acceleration in business momentum in the second quarter, as a pickup in volumes and client activity offset pressure on margins.Both its consumer banking and wholesale banking businesses achieved a rise in income by a high single digit percentage for the quarter, compared to last year.Income growth remains well diversified by product and geography with double digit growth expected in markets including Hong Kong and Africa, the company said.However, income in Korea and Singapore is expected to remain weak. Net interest margin is anticipated to fall from the previous year by around 20 basis points, reflecting margin compression arising from high levels of liquidity in its markets. Costs remain tightly managed and have grown broadly in line with income. "This is a good performance against a backdrop of ongoing turbulence in the global economy, with the group's second quarter showing an acceleration over the first quarter of 2013 and over the comparable period last year," said Peter Sands, Group Chief Executive."Growth has remained resilient across our footprint markets of Asia, Africa and the Middle East with high levels of client activity. We continue to see good momentum across a wide range of products and services."Standard Chartered added that it was highly liquid, well capitalised, had a good grip on costs and risk and remained focused on growing markets.Shares increased 1.99% to 1,438p at 11:05 on Wednesday.RD