CHI - In sharp contrast to the international perception about the crisis being faced by the global financial institutions the Standard Chartered has announced a hefty pre-tax profit of $4.57 billion in 2008. Standard Chartered showed exceptional performance for 2008 with income rising by 26 per cent to $13.97 billion and operating profit before tax (OPBT) 13 per cent up, to $4.57 billion, in what was a difficult operating environment particularly in the second half. Almost 80 per cent of the income growth came from organic businesses.
The Group managed to significantly build on its reputation as a flight to quality institution with customer deposits rising 31 per cent during 2008, most of it coming in the last quarter as confidence in financial institutions declined. Enhanced liquidity and an even stronger balance sheet, following Standard Chartered's successful rights issue in December, places the Group in a strong position to support clients and capture market share.
Peter Sands, Group Chief Executive, Standard Chartered, said: "We remain open for business and are supporting our clients as they navigate this turmoil. We want to seize the opportunities arising from this turbulence. We have a clear and consistent strategy and continue to invest for growth."
Most of Standard Chartered's key geographies delivered strong performance with seven of the nine geographic regions recording income of over $1 billion in 2008. Singapore saw OPBT rise 67 per cent, India by 37 per cent, Middle East and other South Asia (MESA) by 25 per cent, Korea by 10 per cent and Africa by 5pc.
Focus on balance sheet management has been a key priority for the year. Following the $2.7 billion right issue in December 2008, tier-I capital ratio improved to 10.1 per cent while total capital stood at 15.6 per cent, both above the Group's target ranges. Improved deposit gathering led to the Asset-Deposit ratio improving to 75 per cent from 84 per cent at half year.