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Growth in underlying income accelerated to 28%, up from 23% in 2007. The performance was a result of the disciplined investments made in its core markets over the last few years with 85% of the operating income growth now coming from organic businesses. Both Wholesale and Consumer Banking businesses showed strong income momentum delivering over $3bn of revenue each.
Mr Peter Sands, Group Chief Executive, said:
"I am very proud of what we have achieved in terms of both financial performance and strategic progress, despite the turmoil in financial markets. The Bank is in great shape - we are strongly positioned to weather the economic uncertainties and superbly placed to capture opportunities."
Most of the key markets in the Standard Chartered network delivered strong performance. Hong Kong, the Group's largest market, increased pre-tax profits by 28%; India, now the second largest market, by 89%; Singapore by 55%; Africa by 41%; and UAE 65%. Seven of the nine markets delivered pre-tax profit growth in excess of 25%, and four at over 40%.
The Group's key markets in Asia continued to enjoy robust economic growth underpinned by resilient domestic demand and increased intra-regional trade flows. The African economies continued to leverage off Asian economic growth and commodity demand, while the Middle East region continued to benefit from the high oil price and ample liquidity.
Wholesale Banking delivered an outstanding performance with pre-tax profit jumping 38%. A feature of these results is the breadth and diversity of the Wholesale Banking business, which whether viewed by product, by customer segment or by geography, is firing on all cylinders. The deal pipeline was strong as the Bank entered the second half. The number of clients generating over $5m income increased by 60% in the first half.
Consumer Banking delivered good income growth of 15% while expenses grew 22%, reflecting the Bank's strong investment programme in the franchise, resulting in pre-tax profit rising 2%. Underlying double digit income growth of 10% was underpinned by continued strong growth in SME and Wealth Management.
Mr Richard Meddings, Group Director Finance, said:
"These results reflect the benefits of the significant investments we have made in our key markets and businesses in recent years, together with the value of a clear and consistent strategy. Our growth is broad-based, not concentrated on one region or business, and we have shown great resilience in uncertain times."
The Bank's capital and liquidity position remained strong with Tier I capital at the top end of the target range at 8.5% and total capital at 14.9%. Almost 23% of the balance sheet was held in liquid assets, and the Bank was a net lender in the interbank market as at June 30.
The acquisition of American Express Bank was completed earlier in February and 24 of the 48 markets were legally amalgamated in the first half. The Bank is on course to deliver in excess of the $100m a year of cost savings we had initially expected, and double digit return on investment by 2009.
Mr Shayne Nelson, Regional CEO Middle East and North Africa, said:
"This is an exciting time for Standard Chartered in MESA (Middle East and Other South Asia). We have achieved strong operating profit before tax growth of 34% to $386m for the MESA region. In MENA specifically, we have seen very strong performance with the UAE profit growth in excess of 65%. These are strong economies that have demonstrated very strong performance in the first half."
Posted by Siba Sami Ammari
