StanChart H1 net profit plummets 24%

Businesses in emerging Asian markets experiencing slower growth.

Standard Chartered said yesterday that its first-half net profit fell 24% to US$2.13 billion for the six months to June 30 from US$2.81 billion year-on-year.

Operating income improved 4% to US$9.75 billion from US$9.37 billion year-on-year.

The bank Asia-focused bank was hit by a weak performance in South Korea with revenue falling 5% in the first half. It posted a goodwill impairment of US$1 billion in Korea representing a lower value of assets in the country.

Opertions in Singapore saw profits tumble 12%..

Analysts said markets like Hong Kong, India and Africa this year delivered impressive growth while Korea, Singapore and other Asia-Pacific faltered.

They believe StanChart will unlikely see double-digit revenue growth this year due to uncertainty and growing turbulence in the global economy.

Chairman John Peace said StanChart will not strive for financial growth by increasing bad debts. Growth will not be at the expense of increased risks or higher levels of bad debt.

“It's a sensible balance that we strike across our portfolio," Peace said.