(Sharecast News) – Standard Chartered posted a drop in third-quarter pre-tax profit on Thursday as it took a hit from its exposure to the Chinese property and banking sectors.
In the three months to the end of September, pre-tax profit fell to $633m from $1.4bn a year earlier.
The bank said credit impairment charges in the quarter were $294m, up $62m on the same period a year earlier. This included further charges relating to the China commercial real estate sector.
StanChart said it reduced the carrying value of its investment in China Bohai Bank by $697m. This reflected subdued earnings and a challenging macroeconomic outlook, it said.
The bank highlighted a Common Equity Tier 1 ratio of 13.9%, versus 14% at the end of June and towards the top end of its target range of 13% to 14%.
Chief executive Bill Winters said: “We have continued to make strong progress in the third quarter against the five strategic actions outlined last year, delivering a solid set of results.
“Wealth management has continued its recovery with double digit income growth and the financial markets performance has been resilient against a strong comparator period. We remain highly liquid, and well capitalised, with a CET1 ratio towards the top of our target range and confident in the delivery of our 2023 financial targets, including a return on tangible equity of 10%.”
