Standard Chartered profits boosted by overseas markets

Standard Chartered has announced a 27% increase in annual profit due to growth in its main markets of Asia, Africa and the Middle East.

Pre-tax profits were $4.04 billion (£2.05 billion) in 2007, up from $3.2 billion compared with 2006.

The international bank, which earns 75% of its profit in Asia, increased its write-downs on investments due to global financial turmoil to $300 million from $116 million.

Chairman Mervyn Davies said Standard Chartered has shown how its position in the world’s growth markets and the strength of its balance sheet can deliver record results during turbulent times. We are not complacent about the future but are confident that we will deliver another strong performance in 2008.

Stockbroker Hargreaves Lansdown said for some time now, Standard Chartered has been the darling of the UK banking sector and these figures just re-iterate that.

Last month, Standard Chartered’s structured investment vehicle Whistlejacket went into receivership with the loss of $116 million. The decline in the value of its assets was prompted by uncertainty in global financial markets.

Earnings per share rose 15% to 197.6 cents and the board recommended an annual dividend of 79.35 cents per share.

Temasek, Singapore’s state-linked investment company, increased its stake in Standard Chartered to over 19% last month.

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