Standard Chartered has released its Interim Management Statement (IMS) for the first quarter of 2013, which identified that its operating profit will be slightly lower than a year ago as an increase in hiring, and wages, pushed up costs.
Despite the starting out strongly, the momentum slowed later in Q1, according to Standard Chartered.
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From a geographic perspective, double digit income growth in Hong Kong and Africa was offset by a weaker performance in Korea and Singapore. On a constant currency basis, income in India increased by a low single digit percentage.
Standard Chartered also continued to increase the support for the Indian clients doing business in other regions, according to its IMS.
The asset quality of the lender remains good, with very low levels of impairment. However, Standard Chartered is "watchful", especialy for India and the Middle East, the lender states in the IMS.
ALM income was impacted by the low interest rate environment and low reinvestment yields and was down by a double digit percentage.
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By GlobalDataPeter Sands, group chief executive, said, "Standard Chartered has continued to deliver a resilient performance despite the impact of extraordinary monetary policies in the West and Japan on liquidity conditions across Asia and thus on margins.
"We remain focused on continuing to grow the business, building on our long-standing relationships with our clients and customers, on maintaining our strong balance sheet, and on keeping a firm grip on costs and risks."
Standard Chartered will holds its annual shareholder meeting in London later today. The AGM will be the first since Standard Chartered was hit last year by a US$667 million (431 million pounds) settlement on charges it violated US sanctions against Iran, Sudan, and other countries.
The bank is expected to grow earnings and revenues by about 10% in 2013. This will lift pretax profit over US$7.5 billion.
