Standard Chartered private banking arm has registered a fall in Q1 2020 profit in line with the group profit that was dampened by increased loan provisions in the wake of the Covid-19 crisis.
Key private banking metrics
Statutory pre-tax profit at the private banking unit decreased to $35m in Q1 2020 compared to $70m in the prior year.
Go deeper with GlobalData
Underlying pre-tax profit also nearly halved to $37m from $72m over the period.
However, operating income of $162m in the January-March quarter was 9% higher than the previous year figure.
Wealth Management contributed $116m to the income, which was up 23% from $94m a year ago.
Operating expenses remained stable at $124m.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataGroup highlights
At a group level, Standard Chartered’s profit attributable to ordinary shareholders dropped 12% year-on-year to $810m.
The banking group’s underlying pre-tax profit decreased 12% to $1.22bn from $1.38bn.
This was driven by a rise in bad loan reserves from $956m to $78m due to the Covid-19 pandemic.
In Greater China & North Asia, which has been affected hard by the pandemic, the bank’s underlying pre-tax profit dipped only 1% year-on-year to $650m.
Africa & Middle East reported an 83% plunge in underlying profit to $47m.
On the bright side, Europe & Americas swung to a profit of $101m in Q1 2020 compared to a $32m loss in Q1 2019.
The bank has displayed a somewhat positive tone on the recovery and hopes to “come through the crisis with strength”.
“We expect a gradual recovery from the COVID-19 pandemic, with major contraction in economic growth rates across most of the world in the second quarter, before the global economy moves out of recession in the latter part of 2020, most likely led and driven by markets in our footprint,” it said.
