Standard Chartered expects pre-tax profits increase

13 December 2006

Asia investment specialist Standard Chartered has said that it is on course to report an 18 per cent increase in pre-tax profits for 2006, in line with the current market consensus.

The UK-based bank said the expected increase in profits before tax was due to the strong performance and growth of both its consumer and wholesale businesses.

"We have good momentum in both businesses," commented Peter Sands, Standard Chartered's chief executive.

"The integrations of Union Bank and Hsinchu International Bank are progressing very well. We are delivering good performance through client focus, geographic diversity and innovation in products."

The bank acquired a controlling stake of Pakistan's Union Bank in August this year, followed by the takeover of Hsinchu Bank in Taiwan.

However, Standard Chartered added that its acceleration of the rate of investment in its franchise means that costs are likely to grow in line with income.

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