 "Standard Chartered India's pre-tax profit rises 3% in 2013")
Standard Chartered Bank on Wednesday said its pre-tax profit in India rose three per cent to $697 million in calendar year 2013. The profit growth was capped on account of fluctuations in the currency exchange rate, higher loan impairment charge, reduced valuation and write-off in its principal finance portfolio (which includes its private equity and other investments), and a charge on bond exposure.
Income grew seven per cent to $1.7 billion. The loan impairment increased to $195 million, while other impairments expanded to $105 million during the year. However, in constant currency, the bank’s India profit was up 11 per cent, while its income grew 17 per cent.
“We have delivered a resilient performance, with both income and profits growing by double digits in constant currency, in a very challenging environment with muted corporate activity and a currency drag of approximately 10 per cent,” said Sunil Kaushal, regional chief executive for India and South Asia at Standard Chartered Bank, in his post-earnings comments.
The lender’s wholesale banking income rose seven per cent to $1.2 billion, aided by corporate finance, foreign exchange and rates, and cross-border activity from Indian clients. Operating profit of wholesale banking, however, fell one per cent to $577 million.
Consumer banking income grew six per cent to $466 million driven by mortgage, credit cards and personal loans, high-value and small and medium enterprises (SME) businesses. The operating profit of retail banking operations was up 26 per cent at $120 million. “Both businesses have grown income well with consumer banking profits exceeding $100 million for the first time. Our outlook for 2014 is cautious and we expect the macro-environment in India to remain somewhat challenging and uncertain,” said Kaushal.
Globally, 2013 was a difficult year for the bank. Tough market conditions resulted in the bank’s income shrinking by one per cent, while its profit before tax declined seven per cent globally.
Income grew seven per cent to $1.7 billion. The loan impairment increased to $195 million, while other impairments expanded to $105 million during the year. However, in constant currency, the bank’s India profit was up 11 per cent, while its income grew 17 per cent.
“We have delivered a resilient performance, with both income and profits growing by double digits in constant currency, in a very challenging environment with muted corporate activity and a currency drag of approximately 10 per cent,” said Sunil Kaushal, regional chief executive for India and South Asia at Standard Chartered Bank, in his post-earnings comments.
The lender’s wholesale banking income rose seven per cent to $1.2 billion, aided by corporate finance, foreign exchange and rates, and cross-border activity from Indian clients. Operating profit of wholesale banking, however, fell one per cent to $577 million.
Consumer banking income grew six per cent to $466 million driven by mortgage, credit cards and personal loans, high-value and small and medium enterprises (SME) businesses. The operating profit of retail banking operations was up 26 per cent at $120 million. “Both businesses have grown income well with consumer banking profits exceeding $100 million for the first time. Our outlook for 2014 is cautious and we expect the macro-environment in India to remain somewhat challenging and uncertain,” said Kaushal.
Globally, 2013 was a difficult year for the bank. Tough market conditions resulted in the bank’s income shrinking by one per cent, while its profit before tax declined seven per cent globally.