Standard Chartered's 2004 profit up as provisions fall<\/p>\n
Bloomberg, London<\/p>\n
Standard Chartered Plc., the British bank that makes about two-
\nthirds of its profit in Asia, said 2004 profit rose 44 percent as
\nit set aside less money for loans that may not be repaid.<\/p>\n
Net income advanced to US$1.48 billion from a restated $1.02
\nbillion a year earlier, the London-based lender said on Wednesday
\nin a Regulatory News Service statement.<\/p>\n
That was higher than the $1.36 billion median estimate of 10
\nanalysts surveyed by Bloomberg.<\/p>\n
Chief Executive Mervyn Davies, 52, is buying companies in
\ncountries including Korea and Indonesia, betting they'll grow
\nfaster than developed economies in Europe.<\/p>\n
He led the $3.3 billion purchase of Korea First Bank last
\nmonth to gain a lender with more than 3 million consumers in
\nAsia's third-biggest economy.<\/p>\n
"There has been broad based revenue growth in almost all our
\ngeographies and our bad debt performance has been excellent,"
\nBryan Sanderson, the company's chairman, said in the statement.
\nShares in Standard Chartered gained 5 percent last year, making
\nit the fourth-worst performing stock on the 10-member FTSE 350
\nBanks Index, which advanced 6.8 percent.<\/p>\n
Earnings gained after Standard Chartered set aside less money
\nfor bad loans. Full-year provisions declined to $214 million from
\n$536 million a year earlier.<\/p>\n
Annual provisions were expected to drop to $287.5 million,
\naccording to the median estimate of eight analysts.<\/p>\n
In the first half, the consumer-banking business reported a 47
\npercent increase in operating profit to $524 million.<\/p>\n
The bank's purchase of Korea First, its biggest acquisition in
\na century and a half, gave it 404 branches in the country and a 6
\npercent share of the banking market.<\/p>\n
The purchase will dilute 2005 earnings per share by 5 percent
\nor less, Davies said at the time of the purchase.<\/p>\n
Standard Chartered is also expanding in the Middle East and
\nSouth Asia, regions that generated 19 percent of pretax profit
\nduring the first half.<\/p>\n
The bank has become the first international lender to win a
\nlicense to open a branch in Iran since the 1979 Islamic
\nrevolution in that country.<\/p>\n
In neighboring Iraq, Standard Chartered is one of three banks
\nto win the first licenses to operate in the country after the
\nU.S.-led invasion.<\/p>\n
Second-half profit probably rose 11 percent to $612 million
\nfrom $549 million a year earlier, according to Bloomberg
\ncalculations based on annual estimates.<\/p>\n
Bloomberg calculates second- half profit by deducting
\npublished first-half figures from annual earnings.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/standard-chartereds-2004-profit-up-as-provisions-fall-1447893297",
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