Standard Chartered first half strong, eyes forecast-beating earnings

Asia-focused Standard Chartered bank said it had performed "very strongly" so far this year, putting it on track to beat a consensus forecast of 17 percent profit growth, despite stepping up investment spending.
Standard Chartered said in a trading update on June 20 that it had produced "very good double digit" percentage growth in operating profit in the first half.
Richard Meddings, finance director, told Reuters he was comfortable for the current consensus forecast for 2007 earnings to move up. Some analysts had not lifted forecasts after the bank last month reported an "excellent" start to the year, and he said those estimates should rise and lift the average.
Analysts had expected 2007 pretax profit to rise to $3.73 billion from $3.18 billion last year, according to both a Reuters Estimates poll of 19 analysts and the consensus supplied by the company.
The London headquartered bank, which makes three-quarters of its profits in Asia, said its wholesale banking income had grown particularly strongly in the first half.
It said it had "very good double digit" percentage income growth in its consumer banking business, too, and across almost all regions. Its shares edged lower, however, as much of the income growth will be swallowed by rising investment.
The bank also said wholesale income in Korea would be flat versus the previous six months, and analysts said they had expected a drop in bad debts in Taiwan to have a more beneficial impact.
By 1217 GMT Standard Chartered shares were down 1 percent at 16.50 pounds, valuing it at just under 24 billion pounds ($47.7 billion).
Standard Chartered said costs were expected to rise faster than revenue in the first half and be in line for the full year, confirming previous guidance as the bank invests to take advantage of growth opportunities in China and elsewhere. It said it was comfortable with the asset quality in both wholesale and consumer banking.