Standard Chartered Bank Update
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As the economic outlook improves in the second year of the coronavirus pandemic, Standard Chartered has become the latest European bank to surge in profits and resume paying dividends.
The bank’s pre-tax profit in the second quarter of this focused on emerging markets was US$1.15 billion, an increase of 55% over the same period last year, and exceeded analysts’ consensus expectations of US$1.1 billion.
However, compared with the first three months of this year, the bank made 1.41 billion U.S. dollars and its profits declined. In the first half of this year, Standard Chartered reported a pre-tax profit of US$2.56 billion, an increase of 57% over the same period in 2020.
Standard Chartered also announced a $250 million share repurchase and said it will pay temporary expenses dividend 3 cents per share, totaling US$94 million.The decision was made after it took similar actions HSBC Bank This week, after profits soared from $1.1 billion to more than $5.1 billion, the company resumed paying an interim dividend of 7 cents per share.
Bill WintersThe CEO of Standard Chartered Group stated that despite the poor performance, he was “encouraged” by the performance. “Unbalanced” recovery From Covid-19 in the company’s largest Asian, Middle Eastern and African markets.
He said: “We believe that we will soon return to the trajectory of performance before the pandemic set us back.”
Winters added: “Our first half of 2021 is a year of recovery, albeit unevenly.” “In the major markets where we have footprint… With the different vaccination plans of various countries, the overall economic recovery and social The timetable for opening up will be longer, leading to lower confidence in some parts of Asia than in the West.”
Standard Chartered’s wealth management business improved its performance in the first half of the year, with revenue increasing by 23%. It also cancelled the US$47 million loan loss reserve set aside to cushion the impact of the coronavirus crisis. This is much lower than HSBC, which announced the release of another US$300 million in reserves this week.
Most of the bank’s revenue comes from Asia, and its pre-tax profit in the first half of the year was US$2.2 billion, accounting for almost 90% of its total profit.
The company said that in the first half of the year, global costs rose by 8% to US$5.1 billion, mainly because it paid more bonuses to retain key employees when profits rebounded this year.