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Standard Chartered’s pre-tax profits fell 30 per cent in the final three months of last year as the era of rising interest rates came to an end.
The bank reported statutory pre-tax profits of $800mn for the fourth quarter, down from $1.1bn a year earlier and missing analysts’ estimates of $983mn.
Chief executive Bill Winters said results for the full year, in which reported pre-tax profits rose 19 per cent to $6bn, were “strong”.
“Our strategy . . . is firing on all cylinders,” said Winters, who has run the bank since 2015.
StanChart said in October it would double investment in its wealth management business and shift its focus away from smaller domestic clients and towards global institutions.
The bank is under pressure to cut costs and grow in areas that are less exposed to interest income.
StanChart shares have now surpassed the level they were at when Winters took the helm, having risen more than 80 per cent since he lamented the bank’s “crap” share price a year ago.
However, the stock still trades at a discount to the book value of the bank’s assets.
This is a developing story
