STANDARD Chartered showed off the benefit of its focus on Asian markets today with a jump in trading income as clients took a more “risk on” approach to investing.
With UK markets moribund, the London based bank enjoyed a day in the sun with first quarter profits up 5.2% to $1.22 billion (£1 billion).
UK banks saw profits in the first quarter tumble as mortgage lending fell while house prices wobbled. Lloyds Bank saw profits down 28% while Barclays fell 12%.
Standard CEO Bill Winters said: “We delivered a strong set of results in the first quarter of 2024, with double-digit growth in income and positive operational leverage. Business performance was strong and broad-based across our segments, products and markets in what continues to be an uncertain environment.”
Joseph Dickerson at brokers Jefferies called it a “strong performance”.
There was a hiccup at the wealth and retail bank arm, where profit fell from $675 million to £610 million.
There was also a black mark on bad debts, with credit impairment charges rising from $20 million to $165 million. Investment banking was flat at $1.6 billion.
HSBC, which also makes most of its profits in Asia, reported profits ahead of expectations this week. It also said CEO Noel Quinn would retire, a surprise to the market which some analysts say was not fully explained.
At Standard, Winters has said he is positive about prospects for business in India and the Middle East for the rest of this year and beyond.
He enjoyed a lift today having previously complained about the bank’s share price performance. The stock was today up 37p, 5%, to 732p. That leaves the bank valued at £19 billion.
So far, Standard seems committed to its London share listing, but given its Asian focus some City analysts say it would not be a huge surprise if it decamped to Hong Kong altogether.
That would be a huge blow. Standard has been a notable part of the Citiy since it was founded in 1853.
Winters added: “We have taken action to create a simpler and more efficient organisation with changes to our Group management structure and we are advancing our Fit for Growth programme. We remain confident in the delivery of our financial targets and are maintaining our full year 2024 guidance."
