Standard Chartered lowers profit forecast

Standard Chartered said its income for 2011 is now expected to grow at "just below a double digit rate" after a depreciation in Asian exchange rates against the dollar.

Previously the bank forecast double digit revenue growth, but today it said it had been hit by Asian exchange rates falling by up to 5% since its third quarter statement.

But the bank confirmed it will press ahead with a recruitment drive that will increase headcount levels by around 2,000 compared to 2010.

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This continued to be driven by increases in Consumer Banking and in China, Hong Kong, Korea, Singapore and its processing hub in India, Standard Charrtered said.

It added loan impairments for the full year were expected to be below the level seen for the full year 2010 and it anticipated double digit growth in profit before tax for the group.

In it consumer banking division, the bank said it had seen some recent signs of slowdown, particularly in wealth management where investor sentiment has been impacted by events in the West.

Wealth Management income in the second half of the year is expected to be below the level seen in the first half.

Mortgage income continued to be impacted by margin pressure and is expected to be down by a low single digit percentage compared to 2010, the bank said.

Standard Chartered also reminded investors that it has no direct sovereign exposure to Portugal, Italy, Ireland, Greece or Spain.

"The growth prospects of our markets in Asia, Africa and the Middle East remain intact despite the increasing uncertainty in the West," said chief executive Peter Sands.