Standard Chartered bank reports record income, profit through May 2009, cautious on outlook

Standard Chartered reports strong start to year

LONDON — Standard Chartered PLC said Thursday that it enjoyed record income and operating profit in the first five months of the year, but remains cautious about the outlook due to the global recession.

The bank, which did not provide figures, said in a trading update that its main markets in Asia had been less strongly affected by the downturn than economies in Europe and North America.

Wholesale activity had been especially strong though consumer banking income in the first half of this year will be down compared to the second half of 2008, it said.

Standard Chartered reported “a moderate deterioration” of tens of millions of dollars in loan impairments since the first quarter, particularly in India, Pakistan and the United Arab Emirates. It reported modest growth for secured lending in Korea, Hong Kong and Singapore.

“Although there are tentative signs of improving economic conditions in some of our markets, equally there are signs of continuing stress. It is still too early to forecast a sustained recovery and we therefore remain cautious on the outlook,” said Peter Sands, the bank’s chief executive.

Standard Chartered shares were up 0.3 percent at 1,199 pence on the London Stock Exchange.

For the year ending Dec. 31, Standard Chartered had reported a profit of $3.3 billion, up from $2.8 billion in 2007. Operating income rose 26 percent to $13.97 billion and total assets rose 32 percent to $435 billion.

On the Net: investors.standardchartered.com