Business
Standard Chartered bank 2013 net profit fell
Publish Date: Mar 05, 2014
Standard Chartered bank 2013 net profit fell
The bank has warned of a difficult first half for 2014. PHOTO/AFP
  • mail
  • img
newvision

HONG KONG - Standard Chartered bank said Wednesday net profit fell more than 16 percent in 2013 and warned of a "challenging" first half for 2014 following significant challenges for its South Korean operations.

The London-based lender, which makes 90 percent of its profits in Asia, the Middle East and Africa, said net profit was $3.99 billion last year, down 16.65 percent from $4.79 billion in 2012.

Standard Chartered's South Korean retail bank suffered a $1.0 billion write-down in its value, and produced lower revenue with higher bad loans during the year, culminating in a $162 million operating loss.

Overall operating income fell one percent to $18.67 billion in 2013, compared to the previous year, while annual profit before tax was down 11 percent to $6.06 billion.

The results follow a decade in which the bank posted consecutive full-year profits.

"2013 was a challenging year, for the industry and for Standard Chartered," said its chairman John Peace in a statement.

The bank said bad loans across its operations had increased by 35 percent year-on-year to $1.62 billion.

"While our clients have remained very active, the overall outcome for the group has not been as good as we would have liked," Peace said.

Consumer banking income for the group grew by two percent to $7.18 billion, while wholesale banking income fell two percent to $11.49 billion.

Weak first half for 2014

The bank's chief executive Peter Sands warned of a weak performance for the first half of 2014 following weak growth in the past quarter.

"Given the weakness of our performance in the fourth quarter of 2013, we anticipate that the first half of 2014 may prove challenging," Sands said in the statement.

"We do not expect to deliver double-digit income growth over the next couple of years, given various pressures, not least Korea," he said.

"However, we haven't abandoned double-digit growth as a longer-term aspiration."

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said the group was "bucking the trend of the wider market", with an outlook that "offsets a disappointing year by its own standards".

The bank said income for Hong Kong rose 11 percent to $1.56 billion, while income from the Middle East and other South Asian regions was up six percent at $801 million.

Its income in Africa increased by 10 percent to $529 million with Kenya being its largest consumer banking income generator, growing 11 percent in that sector alone.

Income from China grew eight percent to $321 million but fell 12 percent to $1.05 billion in South Korea.

In November last year the bank lowered its annual revenue growth target to a range of seven to nine percent for the next couple of years, from an initial forecast of at least 10 percent.

(Dow Jones Newswires contributed to this report)

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
ERA licenses 9 renewable energy projects
An additional 9 renewable electricity plants, some under the Global Energy Transfer for Feed-in-Tarrifs (GET-FiT) programme, have been licensed to generate 132.7MW to boost Uganda’s transformation into an upper middle class country....
Pump attendants tipped on safety standards in case of fire
Vivo Energy, the company that distributes and markets Shell branded fuels and lubricants has conducted a fire drill to test the response preparedness by staff at Shell Service Stations in case of a fire outbreak. The drill was conducted at Shell Kira Road located at the Bukoto white flats....
UAE Exchange customer wins Xpress Money ‘Win Big’ second weekly draw
Xpress Money recently announced the second weekly draw winner of its ongoing promotion – Win Big. Ms. Ann Minviluz Banquerigo, a customer of UAE Exchange, Lugogo Mall branch, won herself a prize money of UGX 250,000 by simply sending money using Xpress Money services....
Total CEO de Margerie killed in Moscow as jet hits snow plough
MOSCOW - The chief executive of French oil major Total, Christophe de Margerie, was killed when his private jet collided with a snow plough as it was taking off from Moscow's Vnukovo airport on Monday night....
Govt to identify key opportunities for growth
THE Government and World Bank are preparing a joint ‘Country Economic Memorandum’ report, which will identify key opportunities and challenges to accelerating socio-economic transformation...
Business guide in conflict resolution developed
A business guide for the business community to resolve conflicts without resorting to courts of law has been developed....
Was Oscar Pistorius' 5 year sentence fair and just?
Yes
No
Can't Say
follow us
subscribe to our news letter