Standard Chartered reported better-than-expected profits after rising revenues thanks to higher interest rates and a strong performance from its trading business.
The bank, which makes most of its revenue in Asia, posted a 6 percent rise in pretax profit to $1.9 billion in the first quarter.
This compares to $1.81 billion a year earlier and beat analyst estimates of $1.4 billion.
Asia-focused lender Standard Chartered beat first-quarter profit estimates
“We delivered a strong set of results in the first quarter of 2024, with double-digit revenue growth and positive operating leverage,” said CEO Bill Winters.
‘Business performance was strong and broad-based across all our segments, products and markets in what remains an uncertain environment.
“We remain confident in meeting our financial objectives and maintain our guidance for the entire year 2024.”
Pretax profits at its corporate and investment banking division rose 13 percent, with its markets and retail businesses also posting increases of 10 and 8 percent respectively.
This helped offset higher credit impairment charges, which amounted to $165 million, up from $20 million a year earlier.
Most of this came from the bank’s retail and wealth division, after it was hit by “mortgage headwinds” in Hong Kong and South Korea.
The bank also took a hit for its stake in China Bohai Bank, with profits falling from $18 million to $6 million, as the country struggles amid a slow economic recovery.
StanChart said it had made provisions of $1.2 billion related to China’s commercial real estate sector, with its credit exposure now at $2.4 billion.
Shares in Standard Chartered rose 6.27 percent on Thursday morning.
It will be a welcome boost for the bank after CEO Bill Winters complained in February that the bank’s share price was “shit.”
StanChart’s latest results come after a busy period for London-listed banks, with most major banks reporting in recent weeks.
HSBC, which also makes most of its profits in Asia, reported quarterly profits slightly above forecasts this week.
However, other UK banks have suffered sharp falls in profits as greater competition for savings and mortgage products has squeezed margins.
Natwest and Lloyds reported a 28 per cent drop in profits in the first quarter, while Barclays recorded a 12 per cent drop.