HONG KONG--Standard Chartered PLC (STAN.LN) expects to report high single-digit revenue growth in the first half of 2012 that has slowed from double-digit growth in the same period last year because of weakness in Asian currencies--especially the Indian rupee, the bank said Wednesday.
Still, the U.K.-based, Asia-focused bank said strong performances in China, Indonesia, Malaysia and Hong Kong have more than offset weaker markets like South Korea. Revenue in India remained muted owing to continued weakness in the rupee against the U.S. dollar, the bank said.
Standard Chartered anticipates high single-digit growth in pre-tax profit for the period thanks to tight control of expenses, which are expected to have risen at a lower rate than revenue.
The rise in revenue is driven by a wider net interest margin, the bank explained.
Consumer banking is expected to deliver mid-single-digit revenue growth in the six months ended June 30, dragged by falling mortgage income in markets like Hong Kong and South Korea, while wholesale banking is forecast to grow at a double-digit rate.
Standard Chartered expects a rise in loan impairment in the first half, adding that it remains "watchful" of the external environment in spite of asset quality that is still in good shape.
The bank remains highly liquid and has no direct exposure to sovereign debt in Portugal, Italy, Ireland, Greece or Spain, it said in a statement.
-Write to Fiona Law at fiona.law@dowjones.com
(END) Dow Jones Newswires
June 27, 2012 01:25 ET (05:25 GMT)
No comments:
Post a Comment