SINGAPORE (Reuters) – Standard Chartered posted a 40% increase in quarterly profit, as the emerging markets-focused bank benefited from a sharp rise in income on higher interest rates.
The improved performance and rising revenues from interest rates helped StanChart to lift its outlook for the year. It expects income to grow 13% instead of a previously forecast 10%.
The lender, which earns most of its revenue in Asia, said statutory pre-tax profit rose to $1.39 billion in the three months to Sept. 30 from $996 million a year earlier and versus the $1.05 billion average estimate of 14 analysts, as compiled by the bank.
“We remain confident in the delivery of our 2024 financial targets,” CEO Bill Winters said in a statement.
StanChart’s statutory credit impairment charges more than doubled to $227 million from a year earlier, reflecting weakness in key economies.
StanChart, present in 59 markets with 85,000 staff, mainly relies on capturing trade flows between its key markets of Asia, Africa and the Middle East but it lacks the heft of larger rivals in commercial banking and investment banking.
Rising rates traditionally buoy bank profits as they can make more from lending than the sums they pay to savers, but the current picture is clouded by the threat of an economic downturn that could cause hefty losses for lenders.
(Reporting by Anshuman Daga and Lawrence White; Editing by Ana Nicolaci da Costa)
