Standard Chartered Sees Bad Loans Ease
April 26 2016 - 5:39AM
Dow Jones News
By Margot Patrick
LONDON--Standard Chartered PLC on Tuesday said last year's spike
in bad loans eased in the first quarter, reassuring investors who
feared there would be more bad news Tuesday after a rough 2016 for
the Asia-focused bank.
Impairment losses were $471 million in the first three months of
the year, around the same as the first quarter of 2015. The figure
had soared to $1.13 billion in the last three months of 2014 as the
bank marked down loans in India and to commodities companies.
Revenue fell in the three months, to $3.35 billion from $4.42
billion in first-quarter 2015. Costs were down, at $2 billion from
$2.28 billion. The revenue decline was expected as other banks also
saw lower client volumes in the first quarter.
Pretax profit was $589 million, down from $1.44 billion, because
of the revenue drop.
Standard Chartered is trying to reinvent itself as smaller and
more focused after a decade of profitable growth in Asia gave way
to a commodities bust and soured loans. Shares in the bank have
recovered 35% from a February low but are still worth half as much
as a year ago.
Tuesday, the stock rose 6.7% after the results were
announced.
Chief Executive Bill Winters shored up the bank's capital with a
share offer in December and is working to unload unwanted assets.
On Tuesday, the bank's finance director, Andy Halford, said talks
are progressing on various disposals.
Mr. Winters said the bank doesn't necessarily think it has
"turned a corner" in bad loans and that they could rise again. We
are "in no way declaring victory" on bad loans," he said.
One unanswered question Tuesday: who will be the bank's next
chairman. Standard Chartered more than a year ago announced that
John Peace would leave the board in 2016 but it still hasn't named
a successor.
Mr. Winters on Tuesday said the search is ongoing.
Write to Margot Patrick at margot.patrick@wsj.com
(END) Dow Jones Newswires
April 26, 2016 05:24 ET (09:24 GMT)
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