StanChart reports weak profit growth

Says growth was in “low single digit".

Standard Chartered Plc. said its operating profit for the first nine months of the year was up by a low single digit percentage and that income also grew at a similar rate. Income took a hit from adverse currency and Korea’s economic difficulties. Costs in the quarter were broadly flat, while quarterly impairment was below the first half run rate, at less than $300 million.

The bank said Hong Kong and Africa delivered strong performances and continue to grow income and profit at double digit rates for the year to date, while these were offset by weaker performances in Korea and Singapore where income in both markets declined by single digit percentages.

The update excludes the impact of the estimated $260 million in UK bank levy, the own credit adjustment, impairment of goodwill in respect of Korea, and the payment of $340 million in the third quarter of 2012 to the New York State Department of Financial Services.

For the full year, the firm now expects a non-recurring tax related cost in Korea of US$60 million. In consumer banking, operating profit was down by a mid single digit percentage, as performance of Korea continues to have a material impact on the segment. Excluding Korea, consumer banking grew both income and profits by high single digit percentages.