Standard Chartered's net profit up

Standard Chartered yesterday reported its ninth consecutive year of record profits. The bank's net profit increased 12 per cent to $4.75 billion (Dh17.45 billion) last year from $4.23 billion in 2010, while operating income was up 10 per cent to $17.6 billion and the operating profit increased 11 per cent to $6.78 billion. Its continued performance is underpinned by strong capital and liquidity and multiple sources of income across the faster growing markets of Asia, Africa and the Middle East, the bank said in a statement. "Our capital and funding strength allows us to remain open for business and win more market share. We see huge opportunities in our core markets of Asia, Africa and the Middle East," Peter Sands, Group Chief Executive, said. The Middle East and South Asia (Mesa), which includes the UAE, reported a $41 million (4 per cent) decline in working profit to $898 millionr. Loan impairment ended at $197 million, and continues to reflect a small number of specific provisions on historically troubled assets, the bank said. Mesa operating profit fell 10 per cent to $688 million as operating expenses were up $61 million, or 11 per cent, to $598 million, reflecting staff and investment expenditure. The bank's UAE income grew 3 per cent, with growth in the commodities and rates businesses. This offsets a fall in UAE client income, which was impacted by lending margin compression and reducing loan balances following certain big ticket repayments. Islamic banking continued to be a key focus, with revenues in UAE up 65 per cent compared to 2010. "The UAE is an important market for the bank and we will continue to focus on delivering the right banking solutions for our customers and clients," Jonathan Morris, CEO of Standard Chartered in the UAE, said. The group now has 24 markets generating income and 14 producing profits of more than $100 million. The bank continues to report strong capitalisation levels. The group has no direct sovereign exposure to Greece, Ireland, Italy, Portugal or Spain. From gulfnews