Standard Chartered on track for strong first half, remains cautious on outlook

Standard Chartered PLC (LSE: STAN) said it has continued to deliver another strong performance in the first five months of the year, with record levels of income and profit.

In a pre-close trading update ahead of interim results, the bank said although there are tentative signs of improving economic conditions in some of its markets, equally there are signs of continuing stress. “It is still too early to forecast a sustained recovery and we therefore remain cautious on the outlook.“

The economic downturn in its markets will be less pronounced than in Western markets - the bulk of its profits come from Asia, Africa and the Middle East - and given its conservative business model, the group is very well positioned to benefit as markets recover, Standard Chartered said.

Income growth in the first half has been driven by a very strong performance in Wholesale Banking, partly offset by lower income in Consumer Banking.

Asset quality overall has remained in line with company expectations.

“The fundamentals of the group remain very strong; the Group is highly liquid, strongly capitalised with a conservative forward funding profile and has a firm grip of risks and costs. We are very much open for business,” Standard Chartered added.

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