Standard Chartered reported a near 20 per cent rise in profits worldwide but growth in the Middle East and South Asia was held back by a rise in provisions for bad debts and the effects of the Arab Spring.
The London-based banking group, which operates predominantly in emerging markets, beat analysts' estimates with net profits of US$2.5 billion (Dh9.18bn) for the first half of the year, the bank's fifth consecutive six-month period of earnings growth.
Profits for the Middle East and South Asia rose 7.25 per cent to $429 million, slower than other emerging markets such as India, Hong Kong and the Asia-Pacific region.
V Shankar, the bank's chief executive of its non-Asia business, said he was pleased that the bank's Middle Eastern business had been able to absorb the effect of the region's political turmoil while capitalising on higher growth elsewhere.
"There are parts of the Middle East which are doing very well economically … and others which, due to the Arab Spring, are soft," he said. "That's the benefit of having a diversified business. Not all cylinders fire at the same time."
The bank's growth in the region, which also includes Pakistan, Bangladesh and Sri Lanka, was restricted by a 24.1 per cent increase in provisions for bad debts to $144m. Mr Shankar said there was "nothing significant" behind the increase in provisions, given a variety of difficulties experienced. The region nevertheless accounted for the largest share of provisions on the bank's books.
Unlike rival lenders HSBC and Barclays, which have announced thousands of job cuts worldwide this week, Standard Chartered was also likely to lift staffing levels globally by about 1,000 by the end of the year, Mr Shankar said. The bank employed 84,061 staff at the end of June.
The bank's management was pleased that its results had continued the bank's streak of higher profits, said the chairman, Sir John Peace. "Our costs are tightly controlled and we have many diverse sources of good income growth," he said. "We have increased our support to our customers, with loans and deposits up, and our capital and liquidity remain strong."
During the first half, Standard Chartered reported difficult trading conditions in some markets affected by the Middle East's political turmoil. Wholesale banking in "Bahrain continued to see a drop in income as a weaker credit environment impacted risk appetite and business flow", the bank said.
"Exposures in Bahrain, Syria, Egypt, Libya and Tunisia represent less than 0.5 per cent of our total assets."
ghunter@thenational.ae
MATCH INFO
Alaves 1 (Perez 65' pen)
Real Madrid 2 (Ramos 52', Carvajal 69')
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
UAE currency: the story behind the money in your pockets
How tumultuous protests grew
- A fuel tax protest by French drivers appealed to wider anti-government sentiment
- Unlike previous French demonstrations there was no trade union or organised movement involved
- Demonstrators responded to online petitions and flooded squares to block traffic
- At its height there were almost 300,000 on the streets in support
- Named after the high visibility jackets that drivers must keep in cars
- Clashes soon turned violent as thousands fought with police at cordons
- An estimated two dozen people lost eyes and many others were admitted to hospital
Earth under attack: Cosmic impacts throughout history
- 4.5 billion years ago: Mars-sized object smashes into the newly-formed Earth, creating debris that coalesces to form the Moon
- 66 million years ago: 10km-wide asteroid crashes into the Gulf of Mexico, wiping out over 70 per cent of living species – including the dinosaurs.
- 50,000 years ago: 50m-wide iron meteor crashes in Arizona with the violence of 10 megatonne hydrogen bomb, creating the famous 1.2km-wide Barringer Crater
- 1490: Meteor storm over Shansi Province, north-east China when large stones “fell like rain”, reportedly leading to thousands of deaths.
- 1908: 100-metre meteor from the Taurid Complex explodes near the Tunguska river in Siberia with the force of 1,000 Hiroshima-type bombs, devastating 2,000 square kilometres of forest.
- 1998: Comet Shoemaker-Levy 9 breaks apart and crashes into Jupiter in series of impacts that would have annihilated life on Earth.
-2013: 10,000-tonne meteor burns up over the southern Urals region of Russia, releasing a pressure blast and flash that left over 1600 people injured.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
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In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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Weather warnings show that Storm Eunice is soon to make landfall. The videographer and I are scrambling to return to the other side of the Channel before it does. As we race to the port of Calais, I see miles of wire fencing topped with barbed wire all around it, a silent ‘Keep Out’ sign for those who, unlike us, aren’t lucky enough to have the right to move freely and safely across borders.
We set sail on a giant ferry whose length dwarfs the dinghies migrants use by nearly a 100 times. Despite the windy rain lashing at the portholes, we arrive safely in Dover; grateful but acutely aware of the miserable conditions the people we’ve left behind are in and of the privilege of choice.
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
