Pre-tax profit at Standard Chartered rose in the first half and beat analyst estimates, resulting in the resumption of interim dividend payments.
Standard Chartered registered $2.68 billion in pre-tax profit, according to its latest first-half results, marking a 37 percent increase compared to $1.95 billion in the same period last year.
The bank's $2.55 billion in statutory pre-tax profit beat its compailed average analyst estimate of $2.23 billion.
Improved Loan Impairments
Despite lower income (5 percent decrease) and higher operating expenses (8 percent increase), Standard Chartered still saw profits rise due to improved loan impairments fuelled by the economic recovery.
The bank posted a net release of $47 million in credit impairments – including a net release of $67 million in the second quarter – marking a $1.61 billion decrease year-on-year.
Dividend Resumption
The Asia-focused British lender also announced the resumption of interim dividend payments of $94 million – or 3 cents per share – alongside a $250 million share buyback.
«I am encouraged by our positive performance in the first half of 2021 despite an uneven recovery from Covid-19,» said Standard Chartered group chief executive Bill Winters.
«We are more confident in achieving our return on tangible equity targets and we are pleased to announce today an additional share buy-back program together with the resumption of our interim dividend payment.»
Asia Dominance
Asia generated underlying pre-tax profits of $2.24 billion – a 41 percent increase – with income flat after from wealth management performance offset by lower trading income and the low interest rate environment.
The region, which for the bank is made up of the Greater China & North Asia and ASEAN & South Asia sub-regions, accounted for more than 83 percent of Standard Chartered’s total underlying pre-tax profits.
