| Bryan Sanderson, chairman, pointed out that the key priority for the bank in 2005 would be "to accelerate growth" in these two nations as they are emerging as "economic powerhouses" and changing the dynamics of trade. |
| "We are investing heavily in India because we see the scale of the opportunity," said Sanderson. According to the global balance sheet, the bank net investment in India has risen from $482 million to $650 million in rupee currency as on December 2004. |
| StanChart's acquisition of Sumitomo Mitsui Banking Corporation business in India has given it a strong position in the trade corridor between Japan and India. |
| With the change in the trade corridors, StanChart's network in the Middle East and Africa will prove equally important. The integration of its acquisition will give a major boost to StanChart's wholesale banking business in the country. |
| India's net revenue through wholesale business, however, has fallen to $231 million in calendar year 2004, against $242 million in the preceding year. As a result, its operating profit has also dipped to $141 million in 2004 from $151 million in 2003. |
| StanChart, however, pointed out in its balance sheet that as the bank's focus will be to grow customer base and expand revenue, this may slow the pace of operating profit growth in the short term, but will strengthen the bank's position in the medium term. |
| "There is no doubt that we can build on our position as the leading international bank in India," said Sanderson. |
| Standard Chartered Bank in India has added 10 new branches, taking its total network to 75 branches across 27 cities. "We have focused on growing our distribution network and asset base, as well as broadening revenue streams," said Sanderson. |
| The bank's consumer banking business in India has seen growth with net revenue income rising by 12 per cent to $258 million in 2004, up from $223 million in the previous year. |
| Profit on the sale of investment securities arising as a result of a programme to reduce the risk in the book was significantly lower in 2004. The increase in costs of 11 per cent to $97 million is the result of investment in new businesses, people and infrastructure to capture further growth opportunities. |
| Operating profit from consumer banking almost doubled to $78 million from $39 million in 2003. |
| "The strong asset growth and a lower debt charge drove operating profit up by 100 per cent to $78 million, despite contracting margins in both mortgages and deposit accounts. Costs increased by 22 per cent to $ 153 million as a result of continued investment in enhanced risk management, new products and delivery channels to support rapid business growth," stated StanChart. |
| StanChart's Indian operations have brought down the net non-performing assets (NPAs) to $22 million ($23 million) in its consumer banking portfolio. |
| Similarly, NPAs from wholesale banking business have also fallen to a net $13 million from $12 million last year. During the year, $39 million of the general provision was applied to cover litigation in India dating back to 1992 and $4 million was added from acquisitions, stated the bank's balance sheet. |
| Consumer banking is getting more innovative every year, and has helped grow the revenue base on the back of both good asset growth and increase in non interest income from wealth management business, stated StanChart's balance sheet. |
| It cited the example of the Manhattan Card, whereby customer segmentation is driving product innovation. The card is the first in India and Singapore to have risk-based pricing, with about 1,20,000 cards having been issued. |
| "Looking ahead, we will increase customer segmentation to grow key segments such as youth and the international banking sector," said Sanderson. |
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