Standard Chartered, the bank focused on emerging markets, notched up a record first half profit for the tenth successive year and worried that the performance might be seen as 'boring' in the current context of dramatic events in the banking sector.
Profit before tax for the six months to the end of June was up 9% to $3,636m from $3,139m the year before, in line with operating income, which improved to $9,511m from $8.764m in the first half of 2011.
Provisions for bad loans and the like rose to $583m from $412m in the first half of last year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Get 6 issues free
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Post-tax profit attributable to shareholders rose 12% to $2,516m from $2,232m in the first half of 2011. Normalised earnings per share climbed to 116.6 cents from 105.2 cents a year earlier.
Loans and advances to customers were up 4% to $279bn from $269bn in the second half of 2011 and customer deposits were up 2% to $360bn from $352bn in the preceding quarter.
The Core Tier 1 capital ratio, which is a key measurement of a bank's balance sheet strength, eased to 11.6% from 11.9% a year earlier and 11.8% in the prior quarter.
The group continues to be well capitalised to meet evolving regulatory requirements while leveraging the growth opportunities in its markets, the company statement said.
"We remain confident in our ability to grow our business and deliver sustained value for our shareholders," said Sir John Peace, the Chairman of Standard Chartered.
Chief Executive Peter Sands said the company has stuck to its knitting "amidst all the turbulence in the global economy and the apparently never-ending turmoil in the world of banking," and suggested that this made the bank a boring one for journalists to cover, if not for investors to invest in. "It may seem boring in contrast to what is going on elsewhere, but we see some virtue in being boring," Sands said.
"Though the world is increasingly difficult to forecast, for the group as a whole we currently remain on course to deliver on our full year financial objectives - double-digit revenue growth, flat to positive jaws and double-digit earnings per share growth. We have made good progress towards our medium-term target of mid-teens return on equity (ROE), with a pre-levy ROE at 13.8% in this first half," Sands said.
Sands's reference to "positive jaws" is industry jargon relating to increasing levels of business while maintaining or reducing the cost base.
"We have had a strong July, but we are watchful of the significant and growing challenges in the external world, and we are managing risk tightly," Sands revealed.
The interim dividend has been bumped by 10% to 27.23 cents a share.
JH
1,000 children hold over £100,000 in a junior ISA – how to grow tax-free nest egg for your child
How to start investing: a beginner’s guide
