By Clarence Leong


Standard Chartered PLC on Wednesday reported a 32% rise in third-quarter profit as its income was lifted by rising interest rates, though that was partially offset by a higher credit impairment.

The London-based lender said that underlying pretax profit came to $1.42 billion, compared with $1.08 billion in the year-earlier period. The result beat an analysts' estimate of $1.13 billion compiled by the bank.

Thanks to the rise of interest rates globally, the bank's net interest income for the period increased 11% to $1.93 billion, while its net interest margin climbed 20 basis points to 1.43%, it said.

But Standard Chartered also recorded $227 million in credit impairment during the July-to-September period. That included a $130 million charge related to its Chinese real-estate portfolio, in addition to charges from the sovereign ratings downgrade of Sri Lanka. Its impairment for the year-earlier period was $107 million.

The lender said it expects credit impairment in 2022 to be "slightly above the year-to-date annualized loan-loss rate of 18bps."

It said it remains on track to deliver a 10% return on tangible equity target in 2024 if not earlier.

The results were better than those of peer HSBC Holdings PLC, which on Tuesday reported a 46% drop in third-quarter profit as it booked impairment charges from the sale of its French retail unit and increased provisions for bad loans.


Write to Clarence Leong at


(END) Dow Jones Newswires

October 26, 2022 01:04 ET (05:04 GMT)

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