StanChart Profits Surge on Lower Credit Impairments
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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 profit increase in the third quarter?
What was the main reason for Standard Chartered's profit increase in the third quarter?
Significantly lower credit impairments, combined with positive business momentum, were the primary drivers for the surge in pre-tax profits. Credit impairments reduced by 70 percent compared to the same period last year.
Q.How much pre-tax profit did Standard Chartered report for the third quarter?
How much pre-tax profit did Standard Chartered report for the third quarter?
Standard Chartered posted $1.075 billion in pre-tax profits for the third quarter. This represents a 44 percent year-on-year increase for the bank.
Q.Which specific business areas contributed to the positive momentum mentioned by the CEO?
Which specific business areas contributed to the positive momentum mentioned by the CEO?
Standard Chartered's chief executive, Bill Winters, highlighted strong performance in Financial Markets and Trade businesses. There was also ongoing positive momentum observed in Wealth Management.
Q.Did the bank see growth in its interest or other income during this period?
Did the bank see growth in its interest or other income during this period?
Yes, the bank experienced growth in both areas. Net interest income was up 7 percent to $1.735 billion, and other income also saw a 7 percent increase, reaching $2.03 billion.
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