Standard Chartered’s second-quarter profit beats estimates on gains in Asia, transaction banking businesses

Pre-tax profit was US$1.52 billion in the second quarter, beating a consensus estimate of US$1.37 billion

Standard Chartered’s Asia business posted a 39 per cent increase in pre-tax profit in the quarter

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A sign at the Standard Chartered Bank Building in Central. Photo: Edmond So

Published: 1:05pm, 28 Jul 2023Updated: 5:04pm, 28 Jul 2023

Standard Chartered, one of Hong Kong’s three currency-issuing banks, reported a better-than-expected profit for the second quarter, driven by sharp gains in its transaction banking and Asia businesses amid a period of rising interest rates.

The emerging markets-focused lender’s net profit rose by 20 per cent to US$982 million in the three months ended in June, from US$818 million a year earlier, the bank said in a stock exchange filing.

The London-based bank, which generates much of its pre-tax profit in Asia, reported US$1.52 billion in pre-tax profit, ahead of the US$1.37 billion expected by analysts.

“We have much further that we can go. What I’m most encouraged by, after a strong first half like this, is when I see the underlying potential of this business. What I think I can safely say is we’ve just scratched the surface,” Standard Chartered CEO Bill Winters said on a call with journalists on Friday. “Extremely encouraged by what we’ve been able to do so far, but it just opens up a whole window of opportunities for us.”