Standard Chartered operating profit rises to US$ 4.04 billion
Record levels of performance with income exceeding $11 billion and
profits in excess of $4 billion, both for the first time; Raises
dividend payout by 12% to 79.35 cents a share
Standard Chartered PLC delivered another strong performance for the
year ended December 31, 2007 with operating profit before tax (OPBT)
rising 27 per cent to a record $4.04 billion and operating income
increasing 28 per cent to $11.07 billion. Normalised earnings per share
increased 16 per cent to 197.6 cents. The board today announced a
dividend of 79.35 cents per share, up from 71.04 cents for 2006.
Standard Chartered bank, Colombo |
Growth in underlying income was at 23 per cent against 18 per cent,
with 80 per cent of the operating income growth coming from organic
businesses. Both Wholesale and Consumer Banking showed strong income
momentum across all client segments and product categories, with both
businesses contributing well over $1 billion of incremental income for
the year. Both the businesses increased OPBT by 27 per cent.
Group Chief Executive, Peter Sands said: "Despite the turbulence,
shocks and uncertainties in financial markets, we have once again
delivered record profits.
We haven't done this by slowing down or squeezing the businesses - we
invested behind both our wholesale and consumer banking businesses at
record levels last year.
There is more breadth and scale in the Group and our strong
performance in 2007 is spread across multiple products and multiple
geographies."
Many of the key markets in the Standard Chartered network delivered
performance at record levels. Hong Kong, the Group's largest market,
increased PBT by 34 per cent, India by 71 per cent, Singapore 54 per
cent, China 72 per cent, Other Asia Pacific Region by 175 per cent,
while Africa posted a 55 per cent increase in pre-tax profits. Korea
showed strong underlying income momentum which rose in double digits on
an adjusted basis, but due to an accounting treatment of foreign
exchange hedges posted 29 per cent lower PBT.
Other highlights from key markets include:
Over $2 billion income and $1 billion PBT in Hong Kong for the first
time, with income growing at a 7-year high:
India making more profits in 2007 than in 2006 and 2005 put together,
with Wholesale Banking India emerging as the largest business in the
franchise:
Among the first foreign banks to locally incorporate in China, and
nearly doubling staff strength.
Wholesale Banking had a yet another strong year with significantly
higher business volumes and income momentum, and across all client
segments and key markets, with operating income rising 34 per cent.
From a product perspective, Global Markets achieved 41 per cent
growth, Cash Management and Custody 31 per cent and Trade and Lending
income grew by 23 per cent. Standard Chartered has no direct exposure to
US sub-prime assets, and very limited indirect exposure.
"We ended 2007 with strong momentum in both businesses and the Group
has had an excellent start to 2008, particularly in Wholesale Banking
which had a record January. The Bank is in great shape, the foundations
are firm. We will keep investing to sustain our organic growth momentum.
2008 will undoubtedly be testing, but it will also be exciting with new
opportunities emerging alongside new risks," Sands said.
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