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For the ninth consecutive year, Standard Chartered (LSE:STAN) posted income and profit growth, beating the economic woes that have swept the banking industry in 2011.
With an income growth of 10% from a year ago, the international banking group earned $17.6 billion and made a profit of $6.7 billion out it, representing an 11% increase from 2010’s $6.1 billion figures.
“In summary, 2011 was another year of strong performance for Standard Chartered,” Standard Chartered Chairman Sir John Peace said in the annual report released Wednesday, 29th February.
As a testament, the bank plans to hire more than 2,600 employees, in stark contrast to its competitors HSBC Holdings and Royal Bank of Scotland that plan to cut more jobs.
Shift in Growth
In a straightforward statement, the London, Hong Kong, and Mumbai stock exchange-listed bank admitted profits from two of its largest markets as Korea and India fell sharply.
Operating profit in Korea was down $159 million to a loss of $41 million, affected by 10-week strike of employees on compensation issues.
In India, the bank cited increases in interest rates and political and corporate governance issues caused delays and cancellations of investment projects, falling wholesale banking by 14%.
The only international bank to be upgraded by all three major ratings agency since the financial crisis, Standard Chartered drew its’ growth beyond its two largest markets.
Their greater China operations which comprise of Hong Kong, Taiwan, and mainland China saw an 18% increase in income at $4.4 billion and profits grew 46% to $2.1 billion.
Remuneration
As with other banks that released its financial health for the past weeks, Standard Chartered also touched the issue of rewards saying they continue to reward performance.
“The bonus pool has been kept flat and the amount we are paying out in bonuses is less than we are paying to our shareholders by way of a dividend,” the bank disclosed.
The amount disclosed was roughly the same as 2010’s at £800 million ($1.3 billion).
CEO Comments
Peter Sands, Chief Executive of Standard Chartered expressed his gratitude on behalf of the Board:
“Delivering record income and profits in any year is always a good result. To do this every year for nine years through a period of crisis and exceptional volatility is testament to the dedication, discipline and professionalism of the people of Standard Chartered. On behalf of the Board, I would like to take this opportunity to thank them once again for their hard work in making this happen. I would also like to thank our investors for their continued support, not least in giving us the capital required to absorb new regulation and sustain our growth. Our balance sheet strength remains a powerful source of competitive advantage.”
Company Spotlight
Standard Chartered is an international banking group with more than 1,700 branches in over 70 countries offering personal banking, preferred banking, priority & international banking, wholesale banking, SME banking, and islamic banking.
References
↑ Standard Chartered Company History
↑ Standard Chartered posts ninth year of record profits
↑ Standard Chartered Plans to Hire After Record 2011 Profit
↑ Standard Chartered Profit Reaches Record $4.75 Billion
↑ Standard Chartered Net Rises for Eighth Year on Consumer, Corporate Units
↑ Business Operation
↑ Banking Services
