Standard Chartered seeing double-digit growth

28th Jun 2011 07:54

Emerging markets banking leviathan Standard Chartered said that it has continued to build on the strong start it made to the year, with income and profit both showing double-digit percentage growth year-on-year at the end of May.Income in the first six months of 2011 is currently expected to grow at around a double digit rate when compared to the first half of 2010, despite a dip in income from India and a muted growth story in Africa; very strong performances in Hong Kong, Singapore, Malaysia, Middle East & other South Asia (MESA), China and Indonesia have more than offset the subdued showing by India and Africa. Net interest margins are broadly flat on the level seen for the full year 2010. Liability margins have increased moderately in the first half of the year compared to the second half of 2010, whilst asset margins have continued to see some slight pressure, the bank said.Keeping a lid on costs was a key theme of its previous trading update, and the company seems to be making progress on this front, with cost growth - excluding the likely impact of the UK bank levy - expected to be roughly in line with income growth in the first half of the year.Asset quality has been good in both businesses and loan impairment in the first half of 2011 is expected to be below the levels seen in the second half of 2010.At the divisional level, the Consumer Banking unit is expected to see low double-digit percentage year-on-year growth in income in the first half of 2011."Portfolio credit quality in the Consumer Banking business has continued to improve slightly since the year end and it is anticipated that the impairment charge in the first half of the year will be below the level seen in the second half of 2010," the bank said. The Wholesale Banking division income in the first half of 2011 is expected to show good single digit growth over the first half of 2010."Both businesses have good momentum, leveraging off continuing strong economic growth in our footprint markets of Asia, Africa and the Middle East," the statement concluded. --jh