 "StanChart posts 16% drop in India operating profit at $676 mn")
The other factor for the drop in income and profit was the devaluation of the rupee against the dollar. “India’s performance impacted by a difficult macro environment, combined with lower corporate activity and currency headwinds,” said Sunil Kaushal, regional chief executive, India and South Asia, Standard Chartered Bank. However, India remains the top three markets for the bank. “We continue to invest selectively in what is a core market for Standard Chartered,” said Kaushal.
Expenses during 2012 fell nine per cent to $753 million. Operating profit before impairment stood at $832 million, recording a fall of 15 per cent over the previous year. The impairment decreased nine per cent in 2012 to $156 million. Income from wholesale banking fell 13 per cent to $1,145 million, while it fell nine per cent to $440 million for consumer banking. Operating profit in wholesale banking dropped 18 per cent to $581 million, while in consumer banking, it dropped three per cent to $95 million. The share of wholesale banking is approximately 75 per cent.
The net interest margin (NIM) stood at 3.5 per cent, compared with 3.1 per cent in 2011. The group’s profit before tax recorded marginal growth of one per cent at $6,876 million. India is the third largest contributor of the group’s profit. The income of the group recorded a rise of eight per cent at $19,071 million. The net interest income grew eight per cent to $11,010 million, while the non-interest income, too, grew eight per cent to $8,061 million.
Expenses rose 10 per cent to $10,896 million. Loan impairments rose 34 per cent to $1,221 million. According to Kaushal, the outlook is to remain focused on balance sheet foundations and being well positioned in growth markets.