Says it has negligible expsoure to Libya, Syria and Yemen
Standard Chartered bank on Wednesday said its income in the UAE increased 12 per cent to $670.8 million (Dh2.46 billion) in the first half of this year - maintaining its status as the biggest market in the region.
Its overall Mesa income increased 6 per cent to $1.12 billion (Dh 4.11 billion) in H1 2011, said a press statement issued by the bank.
The UAE accounted for 60 per cent of Middle East and South Asia (Mesa) income and 80 per cent of the region's profit. It , however, didn't disclose the Mesa profits.
Asia-focused bank also revealed that it had negligible exposure to the most seriously affected countries (Libya, Egypt, Syria, and Yemen).
It said loan impairment in Mesa was up 11 per cent YoY. Operating profit before tax was up seven per cent to $429 million.
"We continue to selectively added assets in commercial banking and transaction banking business in particular with customer loans growing one per cent YoY and three per cent since year-end. Both businesses in the UAE performed well (commercial banking income up 10 per cent and wealth banking income up 15 per cent) in a tightening regulatory environment but amidst improving market conditions. Notable performances in the region came from Bangladesh and Pakistan, with income up 22 per cent and 10 per cent, respectively, resulting in very strong operating profit growth for both countries," a statement said.
Peter Sands, Group Chief Executive, Standard Chartered said: "This is a very strong set of results - we have delivered record income and profit, grown our balance sheet, and raised our capital levels and dividend. 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."
Jeremy Parrish, CEO, Standard Chartered UAE said: "We, in the UAE have achieved steady income performance despite challenging market conditions with income up 12 per cent over the first half in 2010. Our disciplined approach, the diversity of our businesses, our local knowledge and the advantage of a global footprint are giving us a distinct competitive advantage. We remain in the top five markets globally for the Bank which operates in 70 countries, and are a strong regional hub."
Globally, Standard Chartered reported a record-beating 17 per cent rise in first-half profits on Wednesday as a booming Hong Kong market and increased restraint on costs outweighed a slump in India.
Standard Chartered reported a pretax profit of $3.64 billion, up from $3.12 billion a year earlier and beating analysts' expectations for $3.47 billion.
© Emirates 24|7 2011
