Record Profits Standard at Standard Chartered

LONDON --Standard Chartered  (LSE: STAN.L  ) is in the Olympic swing as it posted its tenth consecutive year with record-setting first-half profits, which were up 12% to $2.8 billion on the back of continued growth in wholesale banking (that's financing trade and helping companies manage their cash flow, as opposed to the banking you or I would do) in the bank's core Asian markets.

The strength in wholesale banking more than made up for a weaker performance from the bank's consumer banking division, which suffered from lower margins on mortgages and higher operating expenses as Standard Chartered builds out its network of branches and staff in the region.

Standard Chartered has one of the healthiest balance sheets of the U.K.-listed banks and, unlike HSBC and Barclays, it isn't trying to recover from serious reputational damage, which may be why it is the highest-rated with a price-to-tangible-book ratio of 1.6 compared to 1.1 for HSBC and 0.4 for Barclays. Standard Chartered's focus on the emerging markets of Asia and Africa and relatively low exposure to the mess in Europe also provide some comfort for investors.

Even after the 10% increase in the interim dividend, Standard Chartered's 3.2% dividend yield isn't overly impressive, but the bank's proven track record and emerging-market exposure could still provide solid returns for investors in the coming years. Even after the shares' run-up from around 13 pounds in May and June investors looking for some exposure to financials could do worse than consider Standard Chartered.

However, if you still don't trust the financial industry you can find some of The Motley Fool's favorite opportunities in other sectors in its free "Top Sectors of 2012" report. Download the free report now by clicking here.

Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is the very latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- it's free.

Further Motley Fool investment opportunities

Nate does not own any shared discussed above. The Motley Fool owns shares of Standard Chartered. The Motley Fool has a disclosure policy.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1967667, ~/Articles/ArticleHandler.aspx, 11/26/2014 12:38:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement