Asian-focused lender Standard Chartered (STAN) disappointed investors with a subdued third-quarter update. Notably, the third quarter impairment charge rose 87 per cent on 2013's third-quarter charge, to $539m (£334m), and management now expects second-half underlying profit to come in below last year's corresponding figure.
Standard's increasing impairments, however, should come as no great surprise. The bank has already flagged up its credit quality issues, especially in Korea where a government-sponsored debt-forgiveness scheme has hit hard. On the upside, the bank is targeting over $400m of cost savings during 2015, while a 10.7 per cent Basel III-basis tier one equity ratio - reported at the half-year stage - suggests a thoroughly healthy capital cushion.