Standard Chartered 2020 Pretax Underlying Profit Dropped 40%
February 25 2021 - 12:12AM
Dow Jones News
By Yifan Wang
Standard Chartered PLC said Thursday that its profit fell 40% in
2020, as sharply higher credit impairments and weak interest rates
hurt profitability in a pandemic-struck year.
The Asia-focused bank posted pretax underlying profit of $2.51
billion last year, compared with $4.17 billion in 2019.
Operating income fell 3% to $14.77 billion, with net interest
income declining 11% to $6.88 billion.
The lower interest income was mainly due to a narrower net
interest margin, which fell 0.31 percentage point to 1.31% in
2020.
The lender expects its overall income in 2021 to be similar to
the previous year, as the low-interest-rate environment continues
to weigh on its business.
However, the bank said it expects income to resume growth of
5%-7% annually from 2022, as the global economic recovery would be
led by large Asian markets, where Standard Chartered makes
two-thirds of its income.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
February 24, 2021 23:57 ET (04:57 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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