Standard Chartered Bank’s (StanChart) Indian branches have posted a 71 per cent increase in operating profit to $690 million in 2007 from $403 million in 2006.
India, is now the second largest contributor to the bank’s global operating profit with a 17 per cent share after Hong Kong’s 34 per cent. India not only is the bank’s biggest business, but is the only market that saw accelerated growth in 2007.
“The rise in profits is largely driven by growth in the wholesale and consumer banking businesses. The wholesale and consumer banking businesses contribute around 65 per cent and 35 per cent respectively to the bank’s revenues. The bank’s middle market business has seen a 131 per cent increase in revenue. The small and medium enterprises, with a client base of around 10,000, wealth management and personal loan business have also seen healthy growth,’’ said Neeraj Swaroop, regional chief operating officer, India and South Asia, Standard Chartered Bank.
StanChart India’s wholesale banking business contributed the biggest change in global profits. Wholesale banking in India saw a 91 per cent rise in profits to $626 million on an 82 per cent increase in income. The bank has added more than 1,000 clients over the last three years and has more than 100 clients generating income of more than $1 million.
The consumer banking business in India crossed $1 billion income for the first time in 2007, growing 60 per cent to $1.3 billion. Operating profit in the consumer banking business was down to $63 million in 2007 against $76 million in the previous year.
Loan impairment in this business was up to $77 million against $46 million. Loan impairment for the bank has risen to $90 million in 2007 as against $39 million due to a wider deterioration in the unsecured consumer lending environment and increased portfolio impairment provision in unsecured lending and credit cards as the portfolio size increased.
The bank’s mortgage business increased to $1,638 million in 2007 from $1,492 million in 2006 and the small and medium enterprises business increased to $920 million as against $567 million.
Expenses increased to $528 million as against $375 million. Investment in people, premises and private banking increased expenses. Other significant costs included investments in branches, service centre centralisation, ATMs and technology. The bank has applied for 40 new branches and 300 ATMs.
India, is now the second largest contributor to the bank’s global operating profit with a 17 per cent share after Hong Kong’s 34 per cent. India not only is the bank’s biggest business, but is the only market that saw accelerated growth in 2007.
“The rise in profits is largely driven by growth in the wholesale and consumer banking businesses. The wholesale and consumer banking businesses contribute around 65 per cent and 35 per cent respectively to the bank’s revenues. The bank’s middle market business has seen a 131 per cent increase in revenue. The small and medium enterprises, with a client base of around 10,000, wealth management and personal loan business have also seen healthy growth,’’ said Neeraj Swaroop, regional chief operating officer, India and South Asia, Standard Chartered Bank.
StanChart India’s wholesale banking business contributed the biggest change in global profits. Wholesale banking in India saw a 91 per cent rise in profits to $626 million on an 82 per cent increase in income. The bank has added more than 1,000 clients over the last three years and has more than 100 clients generating income of more than $1 million.
The consumer banking business in India crossed $1 billion income for the first time in 2007, growing 60 per cent to $1.3 billion. Operating profit in the consumer banking business was down to $63 million in 2007 against $76 million in the previous year.
Loan impairment in this business was up to $77 million against $46 million. Loan impairment for the bank has risen to $90 million in 2007 as against $39 million due to a wider deterioration in the unsecured consumer lending environment and increased portfolio impairment provision in unsecured lending and credit cards as the portfolio size increased.
The bank’s mortgage business increased to $1,638 million in 2007 from $1,492 million in 2006 and the small and medium enterprises business increased to $920 million as against $567 million.
Expenses increased to $528 million as against $375 million. Investment in people, premises and private banking increased expenses. Other significant costs included investments in branches, service centre centralisation, ATMs and technology. The bank has applied for 40 new branches and 300 ATMs.
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