StanChart Indias H1 PBT down 18% over slump, R slide

Written by fe Bureau | Mumbai | Updated: Aug 2 2012, 05:57am hrs
Standard Chartered Bank in India reported a 18% year on year (y-o-y) fall in its profit before tax (PBT) or operating profit to $311 million for the first half of 2012. The income for the bank fell 12% yoy to $790 million. The management attributed the lower profits to the slowdown in the corporate sector, a steep fall in the rupee, coupled with higher impairment charges.

Standard Chartered Bank in India and South Asia regional CEO Sunil Kaushal said: The business has been negatively impacted by the business sentiment and the depreciation of the rupee.

Its wholesale or corporate banking operations saw a 13% y-o-y fall in income to $567 million, 21% y-o-y fall in operating profits to $263 million, with a 81% y-o-y jump in loan impairment to $94 million. Kaushal said that the rise in wholesale loan impairments in percentage terms looked large as it came off a small base and only a few accounts were under stress. On the consumer business side the income fell 6% yoy to $ 223 million, operating profit grew 9% yoy to $48 million and loan impairment fell 45% yoy to $ 11 million.

The total loan book of the bank stood at $11 billion as compared to 12.4 billion during the same period a year back. The wholesale loan book stood at $6.8 billion and consumer loan book at $ 4.2 billion. The net interest margins of the bank stood at 3.3%.

India, which was the highest profit-generating market in 2010 for the bank, has now fallen to the sixth best-performing geography after Hong Kong, Singapore, the Apac region, the Middle East & South Africa, and the Americas, Britain & Europe.