Standard Chartered beat analysts' forecasts with a 31% jump in first-half profit, as growth in Asia continued to outpace western economies and its wholesale banking arm grew strongly. The bank makes three-quarters of its profit in Asia.
Pre-tax profits for the six months to the end of June reached $2.59 billion, surpassing the average $2.39 billion which analysts had expected.
The bank - whose shares have outperformed the UK sector by 43% in the past 12 months - expects growth in most countries in its Asia, Middle East and Africa footprint to moderate, but said it should stay well ahead of growth elsewhere.
'We are in the right markets at the right time, doing the right things,' CEO Peter Sands said. 'We expect a bit of a slowdown in most of our markets relative to the pace at which they've been travelling. But they will still be travelling at GDP growth rates well in excess of what would be regarded as pretty fast growth rates for Western markets,' Sands said.
Standard Chartered was also in a good position to grab market share and hire talent, he said. Market turbulence could throw up acquisition opportunities, but organic growth remained the 'fundamental driver' of strategy.
Standard Chartered's wholesale bank posted a 38% jump in operating profit to $1.65 billion and Sands said it had a strong order book entering the second half.
Its consumer bank's profit nudged 2% higher to $802m, better than some forecasts but held back by the impact of falling interest rates and an 11% rise in bad debts.
Profits in Korea, where Standard Chartered made its biggest ever acquisition in 2005, rose 7% as a strong performance in wholesale banking outweighed a drop in consumer banking. Sands said he was optimistic a turnaround in Korea was on track.
The bank also said its acquisition of American Express Bank last year to bulk up its private bank business would deliver more cost savings than previously expected.
