1 year ago
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Pedestrians walk past the British multinational banking and financial services company Standard Chartered branch in Hong Kong. Standard Chartered on Friday reported first-half pre-tax profit rose 19%, above market expectations, as the emerging markets-focused lender benefited from rising interest rates.
Budrul Chukrut | Lightrocket | Getty Images
Standard Chartered on Thursday said third-quarter pre-tax profit fell by a third, much worse than analysts had expected, as it took a nearly $1 billion hit from its exposure to China's real estate and banking sectors.
StanChart, which earns most of its revenue in Asia, said statutory pretax profit for the third quarter of this year fell to $633 million.
That compared with $996 million a year earlier and the $1.41 billion average of 16 analyst estimates compiled by the bank.
Credit impairment charges rose by $62 million from the same period a year prior to $294 million, as the bank took a $186 million charge related to China's troubled commercial real estate market.
The bank also took a $700 million hit from its stake in China Bohai Bank, which it said reflected subdued earnings at the lender and the challenging economic backdrop.
The bank said it nonetheless remains confident of hitting its returns on tangible equity target, a key measure of its profitability, of 10% this year and 11% in 2024.
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