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Standard Chartered Posts $6.9 Bln Pre-tax Profit In FY12

3/5/2013 5:28 AM ET

Standard Chartered Plc (STAN.L,STAC.L,SCBFF.PK) Tuesday reported $6.9 billion profit before tax for full year 2012, citing rapid growth across many of its markets. The lender said it is the tenth consecutive year of growth in income and profit, supported by diversity of the Group.

The Asia-focused firm stated that both China and Wholesale Banking in Africa reached $1 billion of income for the first time. Standard Chartered also said it is entering the new year with strong momentum in both of its businesses and the board remains confident for the year ahead.

Chairman Sir John Peace stated, "Throughout a turbulent decade - for the world economy and for banking - we have continued to deliver consistent value for our shareholders. Standard Chartered remains a growth story and we are sticking to our strategy, focusing on the basics of good banking, in markets we know well, with clients and customers with whom we have deep relationships."

For the full year, the company posted profit before tax of $6.88 billion, higher than $6.78 billion in the previous year.

Profit attributable to parent company shareholders were $4.89 billion, up from $4.85 billion a year ago. Meanwhile, earnings per share decreased to 197.7 cents from 198.2 cents per share reported last year on higher share count.

Normalized earnings per share, excluding items, were 222.9 cents, while the company posted 195.4 cents last year.

Operating income improved to $19.07 billion from $17.64 billion in the year 2011.

Net interest income grew to $11.01 billion from $10.15 billion in the preceding year. Non-interest income was $8.06 billion, up from $7.48 billion a year earlier.

Consumer Banking income grew 6 percent to $7.2 billion, with strong growth in Cards, Personal Loans and Unsecured Lending, which increased 12 percent from last year. Deposits income improved 11 percent. Wealth Management income was flat with last year.

The banks Core Tier 1 capital ratio was 11.7 percent, compared to 11.8 percent last year.

Customer deposits at the end of the year grew 10 percent to $390 billion and customer advances were up 6 percent to $289 billion.

The board has also recommended a final dividend of 56.77 cents per share, up from 51.25 cents paid last year. This will make the total dividend for 2012 to 84 cents, compared to 76 cents paid last year.

The company said the final dividend will be paid in either pounds sterling, Hong Kong dollars or US dollars on May 14, 2013, to shareholders on the UK register of members at the close of business in the UK on March 15, 2013, and to shareholders on the Hong Kong branch register of members at the opening of business in Hong Kong on the same date.

The 2012 final dividend will be paid in Indian rupees on May 14, to Indian Depository Receipt holders on the Indian register at the close of business in India on March 15.

Among peers, HSBC Holdings Plc (HBC: Quote,HSBA.L), Europe's biggest lender, reported Monday a decline in fiscal 2012 profit reflecting adverse fair value movements on its own debt as credit spreads tightened and hefty money laundering fines and penalties. Underlying pre-tax profit climbed from last year driven by higher revenues and lower loan impairment charges in North America.

According to media reports, HSBC and Standard Chartered are set to cut annual bonuses for their chief executives as well as senior executives after the two banks were stung by hefty fines for violating US money-laundering laws.

STAN.L is currently trading at 1,829.88 pence, up 49.88 pence or 2.8 percent, on 2.24 million shares.

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by RTT Staff Writer

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