Emerging markets drive Standard Chartered profits

Emerging Markets Driving Standard Chartered's Growth

Emerging Markets Driving Standard Chartered’s Growth

Standard Chartered Bank said it started 2011 on a high and announced a 19% jump in its annual profits in 2010.

The bank reported a pre-tax profit of $6.1 billion (£3.7 billion) in 2010 compared to $5.1 billion reported in 2009.

Most of its operations across Asia, Africa and the Middle East have reported strong growth in 2010, the bank claimed. Four-fifths of the London headquartered bank’s profits come from Asia and other emerging economies.

Chief executive Peter Sands said the bank expects to continue its growth momentum in the Middle East – where its profits doubled in 2010, despite the current political crisis.

(The profit) is not really under threat – we still see substantial opportunities for growth in the Middle East. Much of the turmoil is happening in North Africa and we are not present in North Africa”, he said in a interview with BBC.

Exuding confidence in the China growth story, he said: “The underlying drivers of growth in China are extremely resilient,” he said. “There is a risk of bubbles within China, in property prices for example, but do I think China itself is a bubble? No”.

Standard Chartered’s business also grew last year with total lending jumping by 22% or $45 billion over 2009.

Total mortgage lending was recorded at $71 billion – a growth of 23%, while advances made to small and medium businesses grew by a robust 32% to $18 billion.

Its bonus pool in 2010 grew modestly over the previous year, the bank added. The new bank levy in UK will cost it an additional $180 million, Standard Chartered announced.

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