By Clarence Leong
Standard Chartered PLC’s underlying pretax profit rose 44% to $1.075 billion for the third quarter, continuing on a recovery path as its operating income returned to growth and credit impairments eased further.
The bank’s operating income rose 7.0% from a year earlier to $3.765 billion, as strong business momentum more than offset a lower net interest margin.
Credit impairment was $107 million for the quarter, down $246 million thanks to an improving economic backdrop, it said Tuesday, though its net interest margin fell 7 basis points on a normalized basis.
The bank said that it expects credit impairment to remain low in the fourth quarter, and that its income for 2021 will be similar to last year’s on a constant currency basis. From next year, the bank says income growth should return to the 5%-7% guidance range.
Another Asia-focused bank, HSBC Holdings PLC, said last week that its third-quarter net profit more than doubled from a year earlier.
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