Standard Chartered's profit up, shares hit record high

Standard Chartered's profit up, shares hit record high

	Published : Fri, 03 Mar 2006 20:10 By : Cedric Benson Print this Story

LONDON: British bank Standard Chartered Plc. recorded a 19 per cent rise in its 2005 pretax profit even as the Asia-focused bank consolidated its position in the growing markets of the region, especially with a successful integration of SC First Bank of Korea, which it acquired for $3.3 billion in April 2005.

The bank said its 2005 pretax profit rose to $2.68 billion from $2.25 billion, above the market forecast of $2.65 billion. This included a contribution from SC First Bank.

Underlying profit went up 10 per cent on the year and the bank said it expected double-digit income growth in 2006. "We are confident in our strategy of organic growth supplemented by alliances and acquisitions if we see value," said the London-headquartered bank's chief executive Mervyn Davies.

Davies revealed that the bank continued to be on the lookout, but it's important that when it is done as it happened in Korea. The bank has plans for Taiwan and elsewhere, he added.

Standard Chartered has concentrated its operations in Asia, where it is making three-quarters of its profit, Africa and the Middle East. In 2005, it had 12 million customers, 5 million more than in 2003.

The bank had record profits in Hong Kong, which benefited from cost-cutting measures and tourist spending, while its profits in China rose by 80 per cent, where it had increased its staff strength to 1,200. In India, however, competition put margins in unsecured lending under pressure. It said it is talking to the Indian government about expanding its presence and plans to offer new private banking facilities.

The bank is rumoured to be an acquisition target for a European or U.S. bank wanting to have a presence in fast-growing new markets. However, Davies denied such moves.

The bank has announced an 11 per cent increase in its annual dividend to 64 cents. Its shares went up more than 4 per cent to 15.32 pounds, becoming the top FTSE 100 performer, and giving a market value of 18 billion pounds ($31.5 billion).