Standard Chartered reported higher pre-tax profits in Asia due to strong performance from its financial markets business as well as improved net interest margins. India was highlighted as a key income contributor.
Pre-tax profits at Standard Chartered's Asia business reached $3.7 billion in 2022, according to the bank’s annual report, up 8 percent year-on-year.
Operating income increased 7 percent to $11.2 billion, driven by strong performance from the financial markets business and expansion of net interest margins.
Higher income was offset by an increase in credit impairments to $838 million, driven primarily by charges related to China’s commercial real estate sector. Lending and wealth management income also fell due to reduced transaction volumes from poor market conditions as well as Covid-linked restrictions affecting the Hong Kong and China markets.
Top Contributors
Within the region, Hong Kong and Singapore remained as the staple top contributors of income at 33 percent and 17 percent, respectively. Interestingly, India was also a top contributor in 2022 at 11 percent, followed by other markets at 39 percent. In 2021, top income contributors in Asia included Hong Kong (33 percent), Singapore (15 percent), Korea (11 percent) and others (41 percent).
Capturing opportunities from accelerating economic growth in India is one of the strategic priorities at Standard Chartered.
Overall, the Asia-focused British lender registered 28 percent of pre-tax profit growth to $4.3 billion in 2022.
