Standard Chartered to raise £1bn

4th Aug 2009 07:06

Asia-focused bank Standard Chartered is to raise £1bn through a placing after a solid first half with profits up by 10% despite a more than doubled bad debt charge.Interim profits to end June rose to $2.84bn, from $2.59bn, on operating income up 14% to $7.96bn, from $6.98bn this time last year. Impairment charges on loans rose to $1.09bn from $465m in June last year and from $865m at end December. Standard said it wants the money from the placing because it believes the economic downturn will be shorter and less pronounced in its core Asian markets, which it expects to return to growth far quicker than more developed markets.'The quality of Standard Chartered's franchise and its financial strength means we have the opportunity to build a clear strategic advantage over our competitors in our core markets. The proceeds from the placing will put us in an even stronger position to do this and drive returns for shareholders,' chief executive Peter Sands said.On the figures, Standard said that Wholesale Banking has had a very strong first half and it also made good progress in Consumer Banking. The cost income ratio fell to 49.6% (H1 2008: 56.4%, H2 2008: 55.7%).The interim dividend goes up by 10% to 21.23c.