Standard Chartered announces 2005 interim results

The Bank's operating profit before tax of US $1,333 million, on income of US $3,236 million, highlighted continuing growth in both its Consumer and Wholesale Banking businesses.

Compared with the same period last year, the Group's net revenues rose 19 per cent, with operating profit before tax rising 20 per cent, while cost-income ratio improved to 52.6 per cent. The Group's results are reported under the new International Financial Reporting Standards (IFRS) requirements, and include two and a half months from Korea First Bank.

The Bank's Chairman, Bryan Sanderson, said Standard Chartered is witnessing positive economic progress in Asia, Africa and the Middle East.

"Our results show clearly that our strategy is delivering results," he said. "Standard Chartered is growing and building on its track record of performance."

The Bank saw strong momentum in both Consumer and Wholesale Banking, with underlying income in both growing 14 per cent.

Mervyn Davies, Group Chief Executive Officer, highlighted the strong performance of the region during his presentation. In the first half of 2005, the United Arab Emirates contributed 7 per cent to the Group's operating profits before tax, on income of US $ 161 million.

Standard Chartered UAE is the Bank's fourth largest market and the biggest in the Middle East.

"We have retained our top five position through the active participation in the Emirates' financial scene and in major project financing," said Ray Ferguson, Chief Executive Officer, Standard Chartered UAE. "These have been most visibly demonstrated by our recent appointment as the clearing bank for the Dubai International Financial Exchange and our structuring, leading and underwriting of a US $1.24 billion term overseas investment loan for the Abu Dhabi government's Taweelah B Independent Water and Power Project.

"On the Consumer Banking scene we have delivered constant product innovation and launched niche products, particularly in our credit card offering, which is currently the largest in the country. "Going forward customers can expect an expanded offering across many sectors of Wholesale and Consumer banking as we continue our mission of Leading the Way in these sectors."

The Bank is headquartered in London and listed on the FTSE 100 in the United Kingdom and the Hang Seng Index in Hong Kong. In April, it completed its acquisition of Korea First Bank (KFB), the seventh largest bank by assets in Korea, and has included two and a half months of KFB performance in its Group results, representing a contribution of US $ 258 million to Group income, and US $ 84 million to Group operating profit before tax.

The Bank reported good progress on the integration of KFB and has moved quickly to address gaps in product offerings promising further investments in new products, distribution channels, training, process alignment and branding in the second half. The Bank has agreed a new brand name in Korea and, subject to regulatory approvals, will re-brand its 400 branches across Korea in September.