Standard Chartered sanguine over Dubai exposure

9th Dec 2009 07:21

Asia-focused bank Standard Chartered remains on course for a record year with a strong performance in wholesale banking offsetting lower income in consumer banking, while its exposure to Dubai is not 'material'."With regard to recent developments in the United Arab Emirates, the situation remains in its early stages and is fluid. However, given the profile of our exposures in Dubai, we do not believe any impairment would be material," it said.Chief executive Peter Sands added that the the group is "currently tracking towards a strong performance in 2009, building on the record income and profit in the first half of the year"."The group has continued to perform consistent with the guidance given in the third quarter Interim Management Statement. As at the end of November the group has delivered a strong performance with record levels of income and operating profit before tax," it said."Income growth has been driven by a very strong performance in Wholesale Banking, partly offset by lower income in Consumer Banking, though for the group overall, net interest margins have fallen fractionally since the half year with liability margin compression largely offset by higher asset margins," the statement added. Portfolio credit quality in the Consumer Banking business continues to improve and it is anticipated that the impairment charge in the fourth quarter will be broadly in line with the charge for the third quarter of 2009.In wholesale, both lending and trade were up strongly since the first half of 2009 due to increased volumes and margins remaining at high levels. "We are continuing to win cash management mandates resulting in good volume growth, although income has fallen from the run rate seen in the first half of the year as liability margins remain under pressure," Standard said.