Shares in Standard Chartered have jumped after it said its earnings grew over the start of the year, bucking the trend of UK banks which have seen profits dwindle.
The global banking giant, which is based in London but has a big presence in Asia, said it was continuing to benefit from higher interest rates.
It reported a pre-tax profit of 1.9 billion US dollars (£1.5 billion) for the first three months of the year, 8% higher at constant currency rates from the previous year.
On an underlying basis, which strips out the impact of one-off costs, pre-tax profits soared 27% to 2.1 billion US dollars (£1.7 billion) at constant currency.
Today, we’ve announced a strong set of Q1 results for 2024. https://t.co/5GSqI4bnka (PDF)#StanChartResults #HereForGood pic.twitter.com/dwZGYCVdSZ
— Standard Chartered (@StanChart) May 2, 2024
Standard Chartered said it had continued to benefit from higher interest rates, which have been hiked amid rising inflation in countries around the world.
Higher rates and continued strong business activity helped boost the amount of income the bank made during the quarter.
It marks a contrast to major lenders in the UK such as Barclays, Lloyds and NatWest who all reported lower profits at the start of the year, in comparison to 2023 when they were getting a bigger boost from rising interest rates.
Standard Chartered has previously reported credit impairment charges in relation to the commercial property sector in China, which has recently faced a sharp downturn that has had a knock-on impact on global businesses.
It said it has provided 1.2 billion US dollars (£1 billion) in total for expected credit losses in relation to the struggling sector.
The bank said it has been keeping a close eye on its exposure to vulnerable sectors and countries, due to the “unusual stresses caused by the currently difficult macro-economic environment”.
It added that it was staying “alert” to volatility caused by heightened geopolitical tensions, amid conflict in the Middle East.
Meanwhile, the bank reported a slight decline in customer deposits, equating to six billion US dollars (£4.8 billion) at constant currency, since the end of last year.
Bill Winters, Standard Chartered’s chief executive, said: “Business performance was strong and broad-based across our segments, products and markets in what continues to be an uncertain environment.”
He added that the lender had taken steps to be a “simpler and more efficient organisation”, following an overhaul of the business which included the appointment of a new head of its investment bank.
Shares in the FTSE 100-listed bank were 5% higher on Thursday.