StanChart Q1 profit rises 6%, beats estimates

div classBodysc17zpet90 cdBBJodivpBy Anshuman Daga and Lawrence Whitep

pSINGAPORE Reuters – Standard Chartereds firstquarter pretax profit rose 6, beating market expectations, as the emerging marketsfocused lender benefited from rising interest rates and flagged a robust outlook.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pStatutory pretax profit for StanChart, which earns most of its revenue in Asia, increased to 1.49 billion in JanuaryMarch, from 1.4 billion a year earlier. This compared with the 1 billion average estimate of 16 analysts as compiled by the bank.p

pThe Londonheadquartered lender, which is focussed on Asia, Africa and the Middle East, said it now expects income growth this year to slightly exceed the previously guided 57 range, underlining how banks prospects are being lifted by rising interest rates even as the global economic outlook grows murkier.p

p“We are on track to deliver 10 return on tangible equity by 2024, if not earlier,” Group Chief Executive Bill Winters said in the results statement on Thursday.p

pWhile the results indicated how rising rates are benefiting banks such as StanChart, they also showed indications that tougher times may lie ahead as slowing economic growth in the wake of the COVID19 pandemic bites.p

pThe lender took a 107 million charge due to the ratings downgrade of Sri Lanka, and a further 160 million charge on its exposure‘s to China’s troubled real estate sector. This story refiles to correct name in bylinep

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pp Reporting by Anshuman Daga and Lawrence White Editing by Kim Coghillp

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