StanChart operating profit up 3% at $697 m; bad loans soar

Standard Chartered India today said its operating profit grew 3 per cent to USD 697 million in 2013 but bad assets mounted.
Income of the London-headquartered bank, which nets over 90 per cent of its profit from Asia and Africa, grew 7 per cent to USD 1.69 billion in the reporting period, it said in a statement.
For 2013, the operating profit from wholesale banking was down 1 per cent to USD 577 million, while, the same for consumer banking was up 26 per cent at USD 120 million.
"Owing to tough market conditions, loan impairment increased to USD 195 million," it said in the statement.

Standard Chartered India CFO Anurag Adlakha said loan impairment last year was USD 165 million. The rise in stress is reflective of conditions in the economy, he said, adding that one account from the gems and jewellery sector has gone bad.
The bank said that its "other impairment" also saw an increase to USD 105 million on a reduced valuation or write-off in the principal finance portfolio and a charge on bond exposure.

Stanchart's CEO for India and South Asia Sunil Kaushal said it is a "challenging environment", but claimed that the bank delivered a resilient set of numbers.
He stressed that on a constant currency basis, both income and profits grew in double digits.

"Our outlook for 2014 is cautious and we expect the macro environment to remain somewhat challenging and uncertain in the country," he said.
The bank, which is the first and only company to issue depository receipts here, saw its share prise jump 2.33 per cent to Rs 122.95 on the Bombay Stock Exchange at the end of trade today.