Standard Chartered on track for record profit
London-based bank Standard Chartered today issued a positive statement and said it is on target for a record profit this year.
The bank, which has a strong presence in Asia, said that in the 11 months to the end of November it had delivered a strong performance with “record levels of income and operating profit before tax.”
However, since details of the Dubai debt crisis unfolded, shares in the bank have lost 12% over fears about its exposure to the problems in Dubai.
At the end of November, it emerged that state-owned company Dubai World wanted a six-month holiday from its debt repayments. The state-owned conglomerate owes $59 billion of the country’s entire $80 billion debt mountain.
The request of a repayment holiday triggered fears of a run on local banks.
In response, the Standard Chartered said: “With regard to recent developments in the United Arab Emirates, the situation remains in its early stages and is fluid. However, given the profile of our exposures in Dubai, we do not believe any impairment would be material,” the bank said.
The bank, which is listed on both the London and Hong Kong stock exchanges, has survived the financial turmoil better than most of its rivals, primarily due to strong capital reserves and its exposure to faster growing Asian economies.
In related news, the bank recently announced it is be the main sponsor of Liverpool Football Club.
The £80 million agreement, which is a four-year deal, will see the famous red shirts emblazoned with the bank’s name from July 2010.
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