LONDON (Alliance News) - Standard Chartered PLC Thursday reported a fall in operating profit for the first quarter, amid a challenging external environment. Group income dropped during the period, hurt by local currency weakness.
Peter Sands, Group Chief Executive, said, "Despite a somewhat challenging external environment, we continue to support our clients' growth, whilst managing tightly our costs, risks and capital. Our performance so far this year is in line with our expectations.''
The update for the quarter excludes the impact of the UK bank levy, estimated to be around USD350 million for the full year, and the Own Credit Adjustment.
Among peers, HSBC Holdings PLC Wednesday reported lower profit for the first quarter, and added that it continued to experience muted customer activity in April.
Standard Chartered's operating profit in the quarter was down by a high single digit percentage, in line with expectations, the company said in a statement. On a constant currency basis, it was down by a mid single digit percentage.
Group income fell a low single digit percentage from 2013, impacted by local currency weakness, mainly of the Indian Rupee and Indonesian rupiah. Group income was up slightly on a constant currency basis.
According to the lender, broad-based growth across several markets was offset by weaker performances in certain other markets, particularly in Korea, where income is down by some USD110 million year.
Segment-wise, Consumer Banking's operating profit was down by a high teens percentage. Excluding Korea, Consumer Banking operating profit was up by a low single digit percentage.
The division's income fell by a mid single digit rate, hit by continued selective de-risking of the book and further management actions in Korea.
Wholesale Banking's operating profit declined by a mid single digit percentage in the first quarter and income was flat. Client income was up by a low single digit percentage, driven by broad based client activity.
Standard Chartered said loan impairment was up by a low single digit percentage in the quarter and the company is seeing no new areas of material pressure.
Growth in group risk weighted assets on a Basel 3 basis was broadly in line with growth in customer loans and advances. Customer deposits remained in line with year-end levels.
The stock is currently down 0.3% in Hong Kong at HKD168.20.
Copyright RTT News/dpa-AFX
HSBC Holdings (HSBA)
Standard Chartered (STAN)