Standard Chartered Logs High Single-Digit Income Growth At Wealth Arm In Q1

Tom Burroughes

8 May 2013

Standard Chartered, the London-listed bank that earns the bulk of its revenues outside the UK, in regions such as Asia, has said income at its wealth management unit rose by a high single-digit percentage in the first quarter of 2013, and the bank had as a whole made a “very strong start to the year” although momentum later slowed.

In its interim statement, which contained few figures, the bank said income growth was broad based. The income rise at the wealth management business was “ahead of the run rate seen in 2012 with improved investor sentiment”.

“Deposit income fell by a mid single digit rate reflecting ongoing margin pressure despite good growth in customer balances,” the bank said today.

"Standard Chartered has continued to deliver a resilient performance despite the impact of extraordinary monetary policies in the West and Japan on liquidity conditions across Asia and thus on margins. We remain focused on continuing to grow the business, building on our longstanding relationships with our clients and customers, on maintaining our strong balance sheet, and on keeping a firm grip on costs and risks. We are in the right markets and remain confident in the outlook for our business,” Peter Sands, group chief executive, said.

The bank said that regionally, double-digit income growth in Hong Kong and Africa was offset by a weaker performance in Korea and Singapore. On a constant currency basis, income in India increased by a low single digit percentage, and Standard Chartered said it continued to increase its support for Indian clients doing business in other regions.

Group expenses were up by a low single digit percentage. Within this figure, staff costs increased by a high single digit percentage reflecting an increase in headcount of around 560 staff and underlying wage inflation, it said.

Overall the group's operating profit in the first quarter was slightly down on the first quarter of 2012.