Profits at Standard Chartered rose due in part to a record third quarter for its financial markets unit and rising interest rates.
Standard Chartered registered $1.4 billion in pre-tax profit in the third quarter, according to the release of its latest financial results, up 35 percent year-on-year.
This was due to a rise in operating income by 15 percent – or 22 percent on a constant currency basis – which included a record third quarter for the financial markets unit at a 21 percent income increase, most notably from macro trading. Net interest income also climbed 24 percent, fuelled by higher rates that led to an 8 basis point increase in net interest margin.
The bank posted a 3 percent uptick in operating expenses driven by increased investment-based spending, salary inflation and performance-related pay accruals.
Wealth Income Down
Meanwhile, income from Standard Chartered's wealth management business was down 15 percent, on a constant currency basis, which included a 15 percent drop in Hong Kong, its largest market.
«Wealth management income declined […] as major equity markets remained subdued across the footprint reducing transaction volumes, as well as from the impact of COVID-19 restrictions in key markets,» the bank said in the release.
In the first nine months of 2022, the bank has recorded $4.2 billion in pre-tax profits, up 15 percent year-on-year.
