Standard Chartered operating profit rises 13% to $4.57 bn, income 26% to $13.97 bn in 2008 Wholesale Banking delivers another outstanding performance; Group customer deposits jump 31%.

Standard Chartered PLC announced positive results in a "difficult operating environment".

In its results for 2008, it reported income rose 26% to US$13.97bn (with almost 80% of the income growth coming from organic businesses) and operating profit before tax (OPBT) 13% to $4.57bn.

In a statement it said the first half of 2008 saw strong economic growth across key markets driven by strong regional trade flows but performance in the second half was dampened as the financial crisis began to have an impact on the real economy across the world.

However, it has claimed enhanced liquidity and a strong balance sheet, following its successful rights issue in December. Commenting, Peter Sands, group chief executive of Standard Chartered, said: "We remain open for business and are supporting our clients as they navigate this turmoil. We want to seize the opportunities arising from this turbulence. We have a clear and consistent strategy, and continue to invest for growth."

Singapore saw OPBT rise 67%, India by 37%, Middle East and Other South Asia (MESA) by 25%, Korea by 10% and Africa by 5%.

Group performance was driven by wholesale banking which reported income grew 43% to $7.49bn and OPBT by 28% to $3bn.

In the second half of 2008, it noted an increase in delinquencies from both corporate and retail customers, resulting in loan impairment rising 74% to $1.3bn.

Talking about 2009, Sands said Standard Chartered had made a good start to the year with wholesale banking above levels seen in the same period last year, and continued to increase market share.

Rival bank HSBC reported profits of size much larger than most banks, but still came under criticism from some quarters.

While HSBC also made sizeable profits for 2008 - although pre-tax profit was down 14.1% to HK$67,690 million on 2007 - it followed this announcement up with the promise of a rights issue for US$17.7bn claiming the extra capital will allow it to grow as other cash-starved competitors are forced to shrink their businesses.

Vincent Cheng, Chairman of HSBC, said: "HSBC reported resilient results in
2008 amid extremely difficult global economic conditions and increasing financial market turmoil.

"Underscoring the core strength of our diversified franchise, profit before tax in 2008 declined by only 8.6%to HK$67,690 million, excluding the gains reported in 2007 from the dilution of our investments in associates. Asia ex-Hong Kong pre-tax profit grew strongly, up by 16.6% to HK$29,026 million as our investments in organic growth continued to pay off. The economic downturn affected Hong Kong operations the most, with profit before tax declining 28.2%to HK$38,613 million.

"During the year, the group continued to grow its balance sheet across key geographies in the region, including Hong Kong.

"Meanwhile, Global Banking and Markets reported a 26.9% increase in pre-tax profit to HK$31,485 million. This robust result was largely due to higher net interest income from Balance Sheet Management and higher net trading income from foreign exchange and Rates businesses directly aligned to our commercial and corporate customer base.

"Looking forward, we remain cautious and will manage our business accordingly. Costs and headcount will be closely managed across the region while we continue to invest for the medium and long term in markets such as mainland China, Indonesia, Malaysia and India.

"Volatility is expected to remain a feature of global economic and market conditions for much of 2009. We expect the banking environment to remain difficult as lacklustre equity market conditions and low interest rates globally depress equity-related fee income and net interest income respectively. However, in comparison to the OECD economies, the region's two main economic powerhouses, mainland China and India, should maintain relatively high rates of economic growth."