StanChart Profit Slides But Beats Analyst Estimates
Backed by lower credit loss provisions, profits at Standard Chartered dropped 40 percent in the third quarter but outperformed analyst forecasts.
Standard Chartered posted $745 million in pre-tax profits for the third quarter, according to its latest results, above the $502 million analyst forecast compiled by the bank.
The outperformance was due in no small part to improved credit impairment charges which totaled $358 million – well below the preceding quarter’s $611 million and the consensus estimate of $614 million.
«Lower interest rates continue to impact income but we remain well-positioned to meet our financial targets, albeit with some delay,» said Bill Winters, group chief executive at the bank.
More Consolidation
While Standard Chartered is in the midst of cutting hundreds of jobs worldwide, it is simultaneously making meaningful transformations to ensure that it remains competitive in the future.
In the latest results, it highlighted several key strategic priorities including the creation of a single pan-Asia region (the bank currently separates its North and South Asia businesses); combining all operations that serve individuals to grow its affluent business; and a sharpened focus on technology.
«Our transformation is allowing us to weather the macroeconomic storm in good shape,» Winters added. «We are further streamlining our organization to sharpen focus on our retail business, more effectively leverage our unique network, and drive efficiencies.»
