Standard Chartered registers 11% rise in financial markets income in Q3 2021

Standard Chartered Plc (LON:STAN) today posted a set of solid metrics for the third quarter of 2021, with the financial markets segment delivering robust results.

Financial Markets income increased 11% from a year earlier (or 4 per cent excluding DVA and the impact of the IFRS9 interest income catch-up adjustment). Macro Trading increased 4% with higher Foreign Exchange (FX) and Commodities income partly offset by lower Rates income. Credit Markets income increased 13% with Financing Solutions & Issuance benefiting from growth in origination and distribution activities along with the IFRS9 income adjustments.

Structured Finance was up 54% due to trading and other gains within Aviation Finance, while negative movements in XVA resulted in Financing & Security Services income reducing by 21%.

Across all segments, income rose 7% year-on-year to $3.8bn, up 5% at constant currency (ccy) and excluding normalisation adjustments.

Underlying profit before tax was up 44% to $1.1bn; statutory profit before tax surged 129% to $1.0bn.

Earnings per share increased 9.5 cents or 70% to 23.1 cents.

Across regions, let’s note that Asia profits increased 13% with a 5% increase in income and $73 million lower credit impairment more than offset by a 4% increase in expenses. The benefit from the IFRS9 interest income catch-up was broadly offset by the non-repeat of the accelerated recognition of an annual Bancassurance bonus in 3Q’20. There was double-digit income growth in India, China, South Korea and Singapore while Hong Kong income was flat.

Europe & Americas income increased 22%, with strong double-digit growth in Financial Markets, which along with $23 million lower impairment, resulted in profits increasing more than four-fold.

The Group is accruing a foreseeable dividend in respect of the final 2021 ordinary share dividend in the third quarter. This is not an indication of the Group’s final 2021 ordinary share dividend, which will be proposed by the Board at the presentation of the 2021 full-year results.