Standard Chartered in single digit income growth
Standard Chartered said its first-quarter income grew by less than its previous 10 percent target, as the strength of the US dollar against Asian currencies impacted income growth.
London-based Standard Chartered, which gets about four-fifths of its income in Asia, earns much of that income in local currencies, which translates to fewer dollars when the US currency strengthens.
Despite this, the overall tone of the bank’s management update was positive, with expenses under control and income growth exceeding cost growth. The bank said that while India continued to disappoint it saw double-digit income growth in Hong Kong, Malaysia, Indonesia, China and the Americas, as well as in its home market.
The bank reported most difficulty in areas such as corporate finance that have been tough for the industry as a whole. It reported strong growth as expected in both its consumer and wholesale banking divisions.
“Overall, the statement is broadly in line with the guidance given when the bank reported (2011) second half results,” said Tom Quarmby, an analyst at Barclays, “and the consensus forecast for the stock should be reachable.”