Standard Chartered profit rises 20% in first quarter

Standard Chartered posted a 20% increase in profit for the first quarter as revenue rose across the bank’s business.

Pre-tax profit for the three months to the end of March rose to $1.19bn (£880m) from $990m as operating income increased 7% to £3.87bn at the Asia-focused lender.

Profit growth was driven by a 14% increase in retail banking revenue to $1.34bn as the bank made more money from wealth management and deposits. Corporate banking revenue rose 7% to $1.74bn as the bank provided more trade finance and other transaction services to clients.

Chief executive Bill Winters said revenue growth was at the top of the bank’s target range and the results showed Standard Chartered emerging from its recent troubles. Winters has set a goal of achieving a return on shareholders’ funds of 8% or more.

Winters said: "This encouraging start to the year shows that we are firmly on the path laid out in February that will take us above an 8% return on equity in the medium term. We are determined to pass that milestone as soon as we can in a safe and sustainable manner, while continuing to improve our service to our new and existing clients."

Standard Chartered boomed during the financial crisis as emerging markets continued to grow while developed markets fell into recession. But the bank expanded too fast, saddling it with rising bad debts and subscale businesses.

Winters, who took over in 2015, has cut costs, tightened controls and scrapped unwanted businesses. The bank restarted paying dividends in the second half of 2017 after cancelling the payout in 2015.

Bad debts fell 4% in the first quarter to $191m and were down 29% from the final quarter of 2017 when there was a one-off charge after rules changed in Korea.