Standard Chartered H1 2019 results highlight the bank’s progress to deliver upon its 2015 transformation plan.
Statutory profit before tax for the six months to end June rises by 3% to $2.4bn. On an underlying basis, profit before tax rises by 11% to $2.6bn.
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Moreover, the bank reports good progress on its strategic priorities.
In particular, income from corporate and institutional clients using the bank’s international network increases by 9% year-over-year.
At the same time, income from affluent individual clients grows by 5%. And productivity is improving, with income per full-time employee up 4%.
Standard Chartered H1 2019 highlights
Operating income of $7.7bn is up 1% while operating expenses of $5.0bn are down by 3%. Success in cutting costs helps to reduce the cost-income ratio. It falls, albeit modestly by 30 basis points from 68.0% to a still too high 67.7%. On the other hand, Standard Chartered reports progress in raising its return on tangible equity. It is up by 88 basis points y-o-y to 8.4%. Other positives include credit impairments of $254m for the first half, down by 13% y-o-y.
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By GlobalDataTotal loans rise by 1.7% to $264bn with deposits up by 5% to $402bn. The first half dividend rises by 17%.
Notable highlights include successful growth of the bank’s digital retail banking proposition. This has now launched in eight markets including Botswana, Zambia and Zimbabwe in the second quarter.
Standard Chartered H1 2019 less positive metrics
Margin pressure results in a flat net interest margin, unchanged from a year ago at a relatively modest 1.59%. The bank ends the first half with a CET1 ratio of 13.5%, down from 14.2% in the year ago period. The bank’s first half retail and private banking units report mixed fortunes.
Retail banking income is down by 1% y-o-y. By contrast, private banking investment is paying off with 10% growth from a year ago.
Income grows by 2% in Greater China & North Asia. But this is more than offset by a 1% reduction in ASEAN & South Asia. There is also a 14% decline in Africa & Middle East, predominantly driven by the UAE.
The Standard Chartered share price is up by 3% at £6.98 following release of its interim results. The share price is up by 15% for the year to date.
