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Standard Chartered hit by Korean woes

RESULTS: Despite a goodwill hit in Korea and headwinds elsewhere in Asia, Standard's longer-term growth prospects remain attractive
August 6, 2013

The slide in profits from Standard Chartered (STAN) reflected a $1bn (£654m) goodwill hit at its operation in South Korea. But adjust for that and factor in own credit adjustments, and first-half pre-tax profit rose 4 per cent to $4.1bn.

IC TIP: Buy at 1586p

South Korea is a problem, however. A slowing economy and a loan impairment hike - driven by a government personal debt rehabilitation scheme - meant its profits (combining the wholesale and consumer results) fell 55 per cent to $137m. Singapore's combined profits fell, too - by 12 per cent to $480m - reflecting slower consumer conditions and weaker wholesale margins. Meanwhile, combined profits at the 'other' Asia Pacific unit fell 19 per cent to $602m.

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