Standard Chartered on Tuesday released its Full Year 2012 financials which showed that its income from wholesale banking rose by 9 percent to $11.78billion; while consumer banking income grew by 6 percent to $7.20billion. With operations in many of the world’s most dynamic economies, the company now has 26 markets delivering over $100 million of income. Total group income was up 8 percent to $19.07 billion.
Africa’s income grew by 15 percent to $1.59 billion. Ten markets delivered double digit income growth, including Kenya, up 34 percent, South Africa, up 28 percent, Ghana up 20 percent, Zambia up 19 percent and Nigeria up 13 percent.
The Americas, UK and Europe region delivered an excellent performance with income up 30 percent to $2.3 billion. “Our strength as a trade and commercial bank has allowed us to assist clients to do business in our markets, as we act as a bridge for our clients to and from Asia, Africa and the Middle East,” Standard Chartered stated.
According to the bank, its client focused strategy generated 8 percent income growth in Wholesale Banking; while Commercial Banking, which accounts for 54 per cent of its client income, was up strongly on the back of growing trade and investment flows to and from its markets.
The bank said it remains disciplined and proactive in its approach to risk management. At a Group level, loan impairment was up by 34 per cent, in line with its expectations.
John Peace, chairman, Standard Chartered said: “I am pleased to report that 2012 was our tenth consecutive year of income and profit growth. Standard Chartered remains a growth story and we are sticking to our strategy, focusing on the basics of good banking, in markets we know well, with clients and customers with whom we have deep relationships. We are entering the New Year with strong momentum in both of our businesses and the Board remains confident for the year ahead.”
Deposit income grew by 11 percent. Income from Credit Cards and Personal Loans grew by 12 percent with a strong growth in balances, up 17 percent. Growth was broad based across all key markets and Standard Chartered enjoyed steady market share gains, especially in Hong Kong and Singapore.
High Value Segments grew 8 per cent and accounted for 46 percent of Group Consumer Banking income and 57 per cent of Consumer Banking income growth in 2012. SME income grew 5 per cent. Private Banking income grew 12 per cent with approximately 4,000 new client accounts and $54 billion of assets under management, an increase of $6 billion in 2012.
“In Consumer Banking, over 80 per cent of its portfolio is secured or partially secured, and the Wholesale Banking book continues to be well diversified by geography and by sector,” Peace added.
He said: “Our strong momentum comes from a range of markets, across both Wholesale and Consumer Banking. Africa and China performed particularly strongly. Our China business and Wholesale Banking in Africa have both reached $1 billion of income for the first time. Income growth rates were also at least ten per cent in Hong Kong, Indonesia, Malaysia, and the ‘Americas, UK and Europe’ region.”