As the interest rates continue to escalate, Standard Chartered profit surged 40% higher. Since, the interest rates boosted the emerging markets-focused on bank’s income. So, the firm get the chance to upgrade its revenue outlook amid the weakening global economy. Basically, the firm earns most of its profit and revenue in Asia. It raised the income growth forecast this year from 10% to 13%. In this case, CEO Bill Winters reported that the bank is confident in delivering 2024 financial targets. To be exact, the bank’s Hong-Kong listed shares increased 2.7%. However, their London-listed shares plunged 5.1%.
Winters is certain that the firm’s performance this year is strong. Also, the economic recovery’s pace is encouraging although the recession hits Western markets. This result arrived after HSBC peer reported a 42% drop in quarterly profit due to loan losses and charges on its French business. Somehow Standard Chartered conditions are different from many other US banks. Although earlier this year they reported weaker profit as they raised provisions to prevent loan losses. Plus, they were aware of the market volatility.
The firm’s profit on the other hand improved from the London-headquartered lender. According to them, the rise of interest rates increased some banks’ profits. Although the global economy is struggling due to energy cost volatility and Russia-Ukraine war. The bank argued that the statutory pre-tax profit increased to $1.39bn in three months from $996m. Plus, analysts also added that the increased profit was also from the strong performance of lenders’ transaction banking unit. Thus, they could manage cash for the corporate clients and received income above 47%.