Standard Chartered records 17% drop in profits

7 August 2013

Standard Chartered has recorded a 17 per cent reduction in profit after taking a $1 billion hit in its South Korean business in the first half of 2013.

The institution, which is based in the UK but makes as much as 90 per cent of its earnings in Asia, said the South Korea continued to be its most difficult market, adding there would be "no quick fix".

Speaking about the bank's fortunes in the nation, chief executive Peter Sands said: "The banking industry as a whole is having an extremely challenging time, given a slowing economy and the impact of multiple policy and regulatory interventions."

Standard Chartered made its biggest ever acquisition in 2005 when it bought First Bank for $3.3 billion and this may be a factor in the difficulties it currently faces.

The institution has been hit by writedowns on bad consumer loans in South Korea, which were taken as a result of a government-backed scheme to help get people out of debt.

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development