Despite stronger global results, Standard Chartered registered a drop in Asia profits which it attributed to headwinds from China and Sri Lanka.
Standard Chartered’s underlying pre-tax profit fell 26 percent year-on-year to $907 million, according to the bank’s first quarter results.
Operating income was flat at $2.8 billion while operating expenses climbed 6 percent to $1.67 billion.
China, Sri Lanka
Standard Chartered’s regional results were slammed by a $285 million credit impairment charge, up from $58 million last year.
According to the bank, this was primarily due to Sri Lanka’s sovereign rating downgrade and exposure to Chinese commercial real estate.
Zero-Covid Impact
In addition to credit impairment charges, the Asia unit’s «very strong» performance from its financial markets business was entirely offset by weaker wealth management income.
The bank attributed weakness in the wealth business to reduced volumes from more volatile markets and the impact of Covid-related restrictions in Greater China and North Asia.
The bank highlighted restrictions from Hong Kong and mainland China as the key hurdle, resulting in a number of branch closures and negative impact on face-to-face sales.
