Standard Chartered Reported 57% Profit Increase

Standard Chartered reported a higher than expected 57% jump in first-half profit and $350 million worth of shareholder payouts, but a fall in revenue showed the longer-term struggle ahead for the bank.

StanChart announced a $250 million share buyback and resumption of interim dividend payments worth 3 cents per share, or $94 million in total, joining other banks in rewarding shareholders after year-long regulatory curbs on payouts were removed last month.

However, its income fell 5% thanks to low interest rates, which the bank said it hopes are bottoming out, and due to declining revenue in its cash cow transaction banking business.

Standard Chartered
Standard Chartered

Having spent the early years since his appointment in 2015 fixing StanChart’s battered balance sheet and slashing costs, Chief Executive Bill Winters has in recent years tried to restore growth.

The results of those efforts have been mixed, as affirmed by the bank’s latest report.

The Asia, Africa and the Middle East-focused bank is looking to capitalise on rising trade between those regions, as well as grow fee-based businesses such as wealth management to compensate for rock-bottom policy rates worldwide.

Reuters

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