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Friday 04th of March 2011
March 2, 2011    

Profits continue to rise at Standard Chartered

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by Kay Murchie

London-based emerging markets bank, Standard Chartered, has today posted annual pre-tax profits of $6.122 billion (£3.76 billion) compared with $5.151 billion in 2009.

The bank, which has a strong presence in Asia, said the rise was driven by a fall in loan impairment losses, which dropped 56% to $883 million.

The bank has weathered the downturn better than many of its rivals due to strong capital and liquidity.

According to Peter Sands, the bank’s chief executive, the year has started well and volume growth in both wholesale and consumer banking.

“These results represent our eighth consecutive year of record income and profits,” said Mr Sands.

However, it highlighted that regulation is a challenge for the bank and has estimated that the UK levy will cost it around $180 million after tax in 2011.

As well as the bank levy, profitability will be hit by the rights issue it launched last October.

The cash call, which represented the biggest for the bank, came after new Basel III regulations, which agreed how much equity banks must hold in reserve in order to prevent another financial crisis.

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