Standard Chartered Q1 profit rises 18% as it begins recovery from Covid-19 impact

[HONG KONG] Standard Chartered posted on Thursday a higher- than-expected 18 per cent rise in first-quarter pre-tax profit, as the emerging markets-focused bank began recovering from the economic hit caused by the coronavirus pandemic.

Pre-tax profit for January-March was US$1.4 billion, versus US$1.2 billion a year earlier, and compared with an average analyst forecast of US$1.08 billion compiled by the British bank.

The improvement was driven by StanChart setting aside less cash to cover bad loans than it had done one year ago, as well as strong performance in its markets business.

However, unlike other British-based lenders such as HSBC and Lloyds that reported earlier this week, StanChart released only a small amount of the funds it holds against bad loans.

The lender took a US$20 million credit impairment, down a hefty US$354 million from the previous quarter. StanChart said it expected income to be similar this year to 2020, and to grow more the following year.

REUTERS