HONG KONG: Standard Chartered said Wednesday it expected a single digit pre-tax profit growth for the first half of this year owing to the US dollar's strength against Asian currencies.
The Asia-focused emerging markets bank said it had enjoyed a "strong start" to the year, but income growth had been affected by the "continued strength of the USD against currencies in our footprint".
Its pre-tax profit rose 17 percent year-on-year in the first half of 2011.
Investors have moved from higher risk Asian assets back into the US dollar -- which is considered a safer bet -- amid growing anxiety about the the global economy, with the eurozone crisis, a stuttering US recovery and a slowdown in China.
"We remain in growth mode and continue to see significant opportunities in our footprint in Asia, Africa and the Middle East," chief executive Peter Sands said in a trading update statement covering the six months to the end of June.
The London-based lender said double-digit income growth was expected in a number of markets including China, Indonesia, Malaysia, Africa and the Americas, United Kingdom and Europe region.
It said income in India "remains muted" in the first half, due to a weak Indian rupee, which hit a record low against the dollar this month.
Standard Chartered, which survived the global financial crisis without state assistance, has a strong footprint across emerging markets.
Its 2011 net profit rose 12 percent year-on-year to a record 3.53 billion euros ($4.75 billion), boosted by strong performance in developing economies.
The firm's half-year earning results are due in August.
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