Standard Chartered Q1 profit nearly doubles to $1bn

Emerging markets-focused bank Standard Chartered reported a near doubling of its first-quarter profits on Wednesday as revenue rose and loan impairment declined.

For the quarter ended 31 March, pre-tax profit was up 94% to $1bn as revenue grew 8% to $3.6bn.

The bank said loan impairment fell 58% compared to the same period a year ago to $198m, and was down 71% from the previous quarter.

StanChart's core capital ratio rose to 13.8% from 13.6% at the end of last year and the bank said it was on track to deliver an additional $1.1bn in planned gross costs efficiencies by the end of 2018 that will fund further investment to create opportunities for growth with clients and to enhance its controls and compliance infrastructure.

Chief executive Bill Winters said: "We are making good progress improving the performance of the group. The significantly increased profit before tax results from particularly low loan impairment and our focus on cost control.

"Competition in our markets remains intense but our investments in the business and focus on our clients is making us more competitive and will enable us to deliver sustainable income growth over time."

Hargreaves Lansdown analyst Laith Khalaf said: "The top and bottom line are moving in the right direction at Standard Chartered, which has benefited from a bit of self-help and some favourable macro-economic tailwinds.

"Costs are being contained, and the bank’s emerging market focus could in the long term prove to be an ace in the hole. By 2030, 73% of the world’s middle class population will be in Standard Chartered’s footprint, compared with 36% in 2009, so the market opportunity is there, if the bank can capitalise on it."

At 1015 BST, the shares were up 3.3% to 752p.