Standard Chartered plc Saw difficult trading conditions in H1; Guides H1 group income 'down by mid-single digits' y/y, Op profit -20% y/y
- CE: This has been a disappointing first half, with difficult trading conditions, particularly in financial markets. We are making good progress against our refreshed strategy and are taking the right actions in response to a challenging environment - managing costs very tightly, disposing of non-core businesses and optimising the deployment of capital. As we navigate this difficult period, we remain focused on the drivers of value creation for our shareholders, continuing to build our franchise to make the most of the enormous opportunities in our markets
- Loan impairment is expected to be up by a high-teens percentage in the first half of 2014 in line with expectations. Asset quality remains good and, in line with previous guidance, we remain watchful in India and of commodity exposures.
- Other impairment includes some US$75 million in relation to valuation impairment of certain strategic investments.
- We continue to see growth in customer loans and advances, up by a low single digit percentage on the 2013 year end position.
- Group RWA, on a Basel 3 basis, are expected to have grown by a mid single digit percentage since the start of the year. This is largely the result of the expected introduction of regulatory changes to risk models, in particular the change to Exposure At Default (EAD) calculations, and credit migration. Underlying RWA growth is expected to be largely offset by very good progress on RWA management initiatives.