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Standard Chartered PLC STAN

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Strong Loan Growth Underpins Net Interest Income Increase in Standard Chartered's Q2

Michael Wu, CAIA Senior Equity Analyst

Analyst Note

| Michael Wu, CAIA |

Standard Chartered’s second-quarter result was within expectations. Underlying profit before tax was USD 1.24 billion compared with USD 733 million the same period last year, mainly due to lower credit costs. Operating income was slightly lower against last quarter and the same period last year, mainly due to weaker fee income, as both comparable periods benefited from stronger capital market activities. A more normalised period in the second quarter saw lower fee income across most products, in particular wealth management income and also Treasury income. With loan growth at 2% against last quarter and net interest margin steady at 1.22% quarter on quarter, net interest income was 3% higher against the first quarter. Excluding interest on impaired assets, normalised net interest margin was 1.17%, and this is expected to be sustained in the second half.

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Company Profile

Business Description

Standard Chartered Bank was established in 1853 by Royal Charter in the United Kingdom, with the holding company Standard Chartered PLC incorporated in 1969. The bank is domiciled in the U.K. and provides banking services across 60 countries, primarily in Asia, Africa, the Middle East, and the United Kingdom. The bulk of the business is in corporate and transaction banking, financial markets, and corporate finance. The bank also has a strong retail franchise in Hong Kong, Singapore, and selective countries in Africa.

Contact
1 Basinghall Avenue
London, EC2V 5DD, United Kingdom
T +44 2078858888
Sector Financial Services
Industry Banks - Diversified
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type
Employees 84,740

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