StanChart Profits Surge on Lower Credit Impairments
In this article (4)
Significantly lower credit impairments coupled with positive business momentum led to a surge in Standard Chartered’s pre-tax profits for the third quarter.
Standard Chartered posted $1.075 billion in pre-tax profits for the third quarter, according to its latest results, marking a 44 percent year-on-year increase.
Not unlike its regional peers throughout the year, the reduction of credit impairments – 70 percent to $107 million compared to $353 million in the same period last year – was a significant contributor to the improved bottom line.
In addition to an improved balance sheet, the broader business experienced positive momentum with net interest income up 7 percent to $1.735 billion and other income also up 7 percent to $2.03 billion.
We delivered a return to top-line growth in the third quarter and achieved further progress against our strategic priorities, with a strong performance in our Financial Markets and Trade businesses and ongoing positive momentum in Wealth Management, said Standard Chartered chief executive Bill Winters.
Questions & Answers
Q.What was the main reason for Standard Chartered's significant increase in pre-tax profits during the third quarter?
What was the main reason for Standard Chartered's significant increase in pre-tax profits during the third quarter?
The primary reason for the surge in pre-tax profits was significantly lower credit impairments. This reduction, combined with positive business momentum, contributed to the improved financial results for the quarter.
Q.How much did Standard Chartered's credit impairments decrease compared to the same period last year?
How much did Standard Chartered's credit impairments decrease compared to the same period last year?
Credit impairments decreased by 70 percent, falling to $107 million in the third quarter. This is a substantial reduction when compared to the $353 million recorded in the same period during the previous year.
Q.Did other areas of Standard Chartered's business also show growth in the third quarter?
Did other areas of Standard Chartered's business also show growth in the third quarter?
Yes, alongside the improved balance sheet, the broader business experienced positive momentum. Net interest income and other income both increased by 7 percent, indicating growth beyond just credit impairments.
Reader pulse
Are reduced credit impairments a sustainable trend?
20,372 votes so far