Standard Chartered profits up 34 percent in first half of year

Author: Agencies

Banking giant Standard Chartered said pre-tax profits were up 34 percent in the first half of the year on Tuesday, in a sign restructuring and cutbacks were supporting a recovery at the lender.

Results in the six months to June showed statutory pre-tax profits of $2.35 billion, up from $1.75 billion year-on-year as the London-based bank continues its recovery from a string of bad debts and misconduct fines.

As China-US trade tensions rise, Chairman José Viñals said Standard Chartered’s exposure to US-China trade was limited, and that he expected the bank to benefit from any subsequent increase in commerce between China and other countries in the Middle East, Asia and Africa.

The report comes as the bank remains under US scrutiny for previous violations of US sanctions.

It announced last week that a deferred prosecution agreement (DPA) reached with US authorities in 2012 would be extended until the end of 2018 as the bank was yet to reach standards required by the DPA.

In 2012 the bank paid $667 million to settle charges it had violated US sanctions by handling thousands of financial transactions involving Iran, Myanmar, Libya and Sudan.

In August 2014, the bank was hit by US regulators with a $300 million fine and restrictions on its dollar-clearing business for failing to detect possible money-laundering.

In its report the bank said its annual spending on financial crime compliance had increased nearly ten-fold since 2012.

Published in Daily Times, August 1^st 2018.