The London-based lender said stronger income from regions such as China and Africa was offset by weaker performance in India, South Korea and Singapore.
"This has been a disappointing first half, with difficult trading conditions, particularly in financial markets," Standard Chartered Group Chief Executive Peter Sands said in a filing sent to the Hong Kong Stock Exchange today.
The bank said income from its financial markets operations was the "main challenge" for the group, with regulatory changes impacting foreign exchange rates.
The group said it expects loan impairment to be "up by a high-teens percentage" in the first half of the year with group income expected to be down by a "mid-single digit" percentage compared to 2013 for the same period.
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Shares in the bank closed down 0.36 percent at HK dollars 166 (USD 21.41) on the Hong Kong stock exchange, and fell almost five per cent in morning trade on the London stock exchange at 1,196.5 pence.
It said then that its South Korean retail bank had suffered a USD 1.0 billion write-down in its value and produced lower revenue with higher bad loans during the year.
In November last year the bank lowered its annual revenue growth target to a range of seven to nine percent for the next couple of years, from an initial forecast of at least 10 per cent.