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Standard Chartered Plc has released half year group results that showed there was good performance across all the segments of the bank, including a Consumer and wholesale banking that performed well in the first half of the year.

The bank saw its income growing by 11 percent while profit went up 17 percent and the group said it was riding on a rapidly developing trade and investment flows across our footprint, allied to a fast-growing middle class, Standard Chartered sees strong opportunities for further organic growth across Asia, Africa and the Middle East.

Group Chief Executive, Standard Chartered, Peter Sands, said the results were a very strong set of results.

“We have delivered record income and profit, grown our balance sheet, and raised our capital levels and dividend,” said Sands. Our growth is resilient and diverse. With a unique position at the heart of growing trade and investment flows between Asia, Africa and the Middle East, with their fast-expanding middle classes, we continue to see significant opportunities for profitable growth across our network.”

In a tough trading environment, the group produced diverse and resilient income growth across a number of products and geographies, driven by recent investment in new product capabilities and income streams with income growth underpinned by a highly liquid.

The bank said it will continue to focus on the strength of the balance sheet in order to support organic growth and support our customers, whilst ensuring we are well insulated from macro-economic and regulatory uncertainty.

“We have grown customer deposits and lending, as we take market share across as wide range of products despite increasing competition in a number of our markets,” the bank said.

Customer deposits grew by 19 percent or US$55 billion to US$343 billion, with the advances to deposits ratio remaining strong at 78.1 percent.

The Group continues to be highly liquid, with US$150 billion of cash or near cash assets, “while we have no sovereign debt exposure to Portugal, Ireland, Italy, Greece or Spain”.

The bank added that it will continue to support economic growth and development across its footprint with total lending climbing by 22 per cent and lending to SMEs up 38 per cent. Mortgage lending was up by 19 per cent.

It added that the quality of the bank’s customer lending continues to improve, with 67 per cent of the wholesale lending book having a maturity of less than 12 months while the average loan-to-value on the mortgage book remains low at 49 percent.

At a Group level, loan impairments fell by six percent to US$412 million, driven by further significant falls in Consumer Banking loan impairments of 29 per cent year on year.

Wholesale Banking loan impairments rose 46 per cent to $201 million in the same period. We remain disciplined and proactive in our approach to risk management.

Geographic performance has been broad and well spread. With the exception of India, all regions have shown good increases in income, with Hong Kong up 29 percent, and Singapore 20 per cent higher. Operating profit and income in India fell by 39 percent and 12 percent respectively, driven by rising interest rates and increasing competition resulting in falling net interest margins.

Wholesale Banking and Consumer Banking saw increased business activity across a number of products and services, as the Group captured market share from our competitors.

Consumer Banking performed strongly in the first half with income and profit growing 15 per cent and 58 per cent respectively, as the transformation programme progresses well.

Income growth was broad-based, with strong volume increases in mortgages, credit cards and personal loans, as the business also continued to attract strong deposit growth. With a strong bias towards deposits, the bank is also well placed to benefit from an uptick in liability margins across several of core markets.

As Asia’s emerging middle class continues to expand, the high value segments of private banking, priority banking and SME banking all grew at more than 10 per cent.

Wholesale Banking saw client income grow by nine per cent to a record level of US$4.44 billion, while overall first half income and profit levels grew by eight per cent and five per cent respectively, also to record levels.

Client income now accounts for 82 percent of Wholesale income. We continue to support trade and investment flows to and from our markets, investing in new product and service sets to meet client demand, whilst further broadening the income base.

Trade finance income grew 11 percent, foreign exchange by 19 percent, with commodities and equities growing by 93 percent, while the capital markets business grew income by 16 percent. Cash management volumes continued to build, up 26 per cent, with income up 33 percent. Wholesale Banking continues to grow income and profit, whilst maintaining strong cost and risk controls, and with robust transaction pipelines for the second half of 2011.


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