The Banking and Strategy Initiative

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Bank Results Preview: Standard Chartered remains highly profitable in key markets

Again, with so much data at hand and so many gamechangers in play , all of HSBC, JP Morgan and the Emerging Markets Prince Standard Chartered would be posted in further detailed banking model and business advantage analysis in their core markets. Stanchart however is a special cazaase for its nimble size and advantages in china with $352 bln in Deposits and $269 bln in Commercial lending. Obviously StanC enjoys a better Core Tier I ratio among the better banks with 11.8%

As of now, the first thing to note about StanChart’s results is that despite their good work in Trade Finance in the China exim story, they are still very much the Prince in the industry, smaller in revenues  to HSBC and nearly 75% in Profit. Of course, this could be comparing Apple to Oranges on the Topline because in retail spread the bank catches on to OP Income / PBT of $6.79 bln compared to HSBC’s $7.9 bln and Wholesale banking beat the world’s best commercial banking in Op income at just short of  $11 bln compared to $8 bln in Commercial Banking and $ 7 bln in Global banking & Markets for HSBC

A global showcase of Asian and Indian banking strengths

However Op Income for the group at $17.64 bln is smaller hit apparently by reduction of Business in Asia. India dropped PBT by 90% compared to 2010


Image by Getty Images via @daylife

when it was the leader for the bank and Korea also dropped by more than 50%. 24 markets generated more than $100 mln each in income The Bank’s overall PBT is less than $7 bln rising 10% from $6.12 bln to $6.77 bln in 2011 and PAT is $4.85 bln. Equity at $41 bln compares with

This bank has been able to grow Mortgages since 2006 by 40% as it operates in Asia and Africa markets incl MENA and total lending in the 5 year’s has nearly doubled and now compares with global competitors at $269 bln. In country wise contributions, Hongkong leads with $3.1 bln OP Income and Other Asia Pacific regions (ASEAN and Australasia) have a combined share of $3.68 bln, growth in double digits over 2010 meaning the same magnitude of business for the bank and equally split between Consumer Banking and Wholesale Banking, though Singapore reaches $924 mln in Op Income up 30% in Personal Banking and $1.26 bln in Commercial Banking and India reaches $1.323 bln in Comml Banking with PAT of over 50% at $706 mln and $482 bln in Personal banking with a PAT of $100 mln.

Middle East is clubbed with Pakistan and Bangladesh but still grew PAT by 99% to $146 mln in Personal Banking and showcased the same 50% of Op income to PAT ratio at $688 mln in Commercial Banking (Wholesale)

Financial Markets Operating Income is $3.7 bln ;ed by $1.5 bln in foreing Exchange building on its strengths in Asian currency trades with just $210 mln in Credit and $893 mln in rates.

Transaction Banking received a boost of 34% in Singapore probably as recognition of it as atrading hub for Global corporations despite headwinds in the Economy’s  due to US port trade. IN Middle East and rest of south Asia, Islamic Banking is a key focus and business in UAE grew by 65%. It also ropes in investors from the Middle East




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This entry was posted on February 29, 2012 by in Financial Markets and tagged , , , , , , , , , , .


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