Interim Management Statement

RNS Number : 8178G

Standard Chartered PLC

28 October 2008

 



Standard Chartered PLC

Interim Management Statement

28 October 2008

Standard Chartered today releases its Interim Management Statement (IMS) for the third quarter of 2008. 

Standard Chartered has continued to make good progress during the third quarter of 2008, building on the excellent first half of the year. It is clear that Asian economic growth is moderating but, in general, the economies remain resilient and their economic growth rates remain well above the rates of growth for markets in the West. We continue to benefit from the growth opportunities across our broad and diverse franchise. 

The Wholesale Banking business continued to see strong and broad-based income momentum albeit slower than the exceptional rates of growth seen in the first half of the year. Transaction banking, especially trade finance, remains strong. While there are some credit losses relating to specific US financial institutions, these are not material to the Group. The carrying value of the Asset Backed Securities portfolio has reduced from USD4.9 billion to approximately USD4.1 billion in the third quarter, principally due to redemptions; the impact of this portfolio on profits is not material. Credit quality in the Wholesale Banking portfolio remains good.  

Income in Consumer Banking arising from Lending and SME has remained steady in the third quarter of 2008. Income in Wealth Management has slowed through the quarter and particularly in September driven by a fall-off in sales as consumers reacted to turmoil in the global financial sector. Credit quality remains good across all major product streams. 

Standard Chartered continues to invest in the franchise while maintaining a disciplined approach to expenses.  In the last month alone, we opened three branches in Hong Kong, increased the overall number of outlets in China to 49 and introduced internet banking in Vietnam. In Private Banking, we have launched programmes aimed at non resident Korean and Indian customers. In Wholesale Banking, we continue to benefit from the market dislocation through attracting high quality talent. On 7 October, we announced the acquisition of Asia Trust, a small bank in Taiwan.

Standard Chartered is strongly liquid and well capitalised with a conservative balance sheet, well diversified by geography, asset type and industry. We have continued to see a steady inflow of customer deposits during the third quarter.  Moreover, we are being selective in asset growth focusing on key businesses and customer segments. We remain alert to the impact of volatility in the currency and financial markets, and the increased levels of uncertainty that result.

Commenting on the third quarter trading, Peter Sands, Group Chief Executive of Standard Chartered said;

'Standard Chartered has seen continued growth in the third quarter despite the turmoil. Our fundamentals are strong and we remain well placed to take advantage of the opportunities we see in our markets, particularly in the current environment. The Group has good momentum underpinned by our strategic focus on Asia, Africa and the Middle East.'

We look forward to providing a further update in early December in the preclose trading statement.

For further information, please contact:

Stephen Atkinson, Head of Investor Relations                  [phone]

Ashia Razzaq, Investor Relations, Asia                                      [phone]

Arijit De, Head of Media Relations                                     [phone]

This document contains 'forward-looking statements' that are based on current expectations or beliefs, as well as assumptions about future events, and include matters which are not facts.  These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar meaning.  Undue reliance should not be placed on any forward-looking statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, plans and objectives of Standard Chartered, to differ materially from those expressed or implied in the forward-looking statements. Any forward-looking statements contained in this document based on past or current trends and activities of Standard Chartered should not be taken as a representation that such trends or activities will continue in the future. Any forward-looking statements speak only as of the date of this document. Standard Chartered undertakes no obligation to revise or update any forward-looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise.

 

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