• July 03, 2018
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Standard Chartered Bank reports 2018 Q1 financial results

First quarter financial performance highlights.

Underlying profit before tax of $1.3bn was up 20 per cent reflecting focus on improving returns

• Statutory profit before tax of $1.2bn included restructuring charges of $70m relating primarily to Principal Finance
• The impact of US dollar depreciation was broadly neutral on underlying and statutory profit
• Annualised underlying return on equity of 7.6 per cent compared to 6.3 per cent in the first quarter of 2017

Operating income of $3.9bn was up 7 per cent or 5 per cent on a constant currency basis

• Income was up 10 per cent excluding Treasury gains made in favourable market conditions in Q1 2017
• Financial Markets income was 2 per cent higher after a strong start to the year moderated in March

Other operating expenses of $2.2bn increased 5 per cent or 1 per cent on a constant currency basis

• The Group has achieved 95 per cent of the four-year $2.9bn cost efficiency target with nine months to go
• Additional efficiencies will fund investment into growth opportunities and to further enhance controll

Regulatory costs were 2 per cent lower following the implementation of several large programmes in 2017

Asset quality for the Group overall has improved year-on-year and remained stable in the first quarter

• Loan impairment now on an IFRS 9 basis of $191m was at a similar level to the same period in 2017

Commenting on the first quarter performance, Bill Winters, Group Chief Executive, said:
“This encouraging start to the year shows that we are firmly on the path laid out in February that will take us above an 8 per cent return on equity in the medium term. We are determined to pass that milestone as soon as we can in a safe and sustainable manner, while continuing to improve our service to our new and existing clients."

Re-disseminated by The Asian Banker