Standard Chartered Plc
The bank said on Thursday it expects pretax profit to still rise by at least 10 percent this year, however, helped by a strong performance in emerging markets such as Singapore and Hong Kong. It expects to report record profit and income.
Standard Chartered said that although it had a strong pipeline in difficult market conditions, income in 2011 is now expected to grow at just below 10 percent, compared with 11 percent in the first half of the year.
By 07:50 a.m. British time the bank's Hong Kong-listed shares were down 1.1 percent.
A depreciation in Asian currencies has hurt reported income, and India and South Korea continued to perform poorly. Full-year income in India will be down on 2010, hit by a tough local business environment.
In South Korea, which was hit by a labour dispute earlier this year, performance was muted in the second half, the bank said. It has started a restructuring programme that will cost about $50 million (31 million pounds) or more, depending on the level of participation, it said.
Wealth management and corporate finance businesses had been impacted by the difficult markets, the bank said, but it expects net interest margins to rise from 2010 levels.
The group has continued to manage expenses tightly, the London-based lender said in the statement. We have continued to invest in both businesses, to underpin income momentum into 2012.
The bank's outlook is in line with industry expectations, with a poll of 25 analysts surveyed by Thomson Reuters I/B/E/S expecting a 12 percent increase in pretax profit to $6.8 billion this year. That would mark a fivefold rise over the last decade.
That has seen Standard Chartered leapfrog big names such as Barclays Plc
StanChart did not provide any specific figures relating to its performance, instead using terms such as double-digit growth and tens of million.millions
The Asia-focused bank, one of the few still hiring while the bulk of the industry shrinks, expects to add about 2,000 net new staff this year, confirming comments made by Chief Financial Officer Richard Meddings to Reuters last week.
Singapore, Hong Kong, China, Botswana, Bangladesh, Pakistan and Indonesia all recorded income growth of more than 10 percent, and the bank said it saw a number of opportunities especially in its wholesale banking business.
Standard Chartered, which started life financing trade between Europe and Asia and Africa in 1853, expects its wholesale bank -- which accounts for three-quarters of profits -- to drive future growth.
(Additional reporting by Steve Slater in London; Editing by Chris Lewis, Jacqueline Wong and Mark Potter)