Standard Chartered Operating Profit Falls 16%

Standard Chartered PLC (STAN.LN) on Tuesday said its operating profit fell 16% in the third quarter, partly because of higher impairment losses.

The emerging markets-focused bank said group operating profit for the three months ended Sept. 30 fell to $1.53 billion from $1.83 billion the same period a year earlier. Its third-quarter operating income rose to $4.51 billion from $4.47 billion.

Total impairment in third quarter was $539 million, up from $289 million a year earlier, the bank said in a statement.

The bank said the increase in loan impairment was related to a small number of accounts, primarily in the Corporate and Institutional Clients segment, some of which have been affected by weak commodity markets.

“We remain watchful in India, in China and of commodity exposures more broadly, where we have continued to tighten our underwriting criteria and reduce our exposures,” the lender said.

Standard Chartered said it expects second-half underlying profit to be lower than a year earlier, partly due a higher U.K. bank levy, regulatory and restructuring costs.

Source: Bloomberg