Yesterday, Standard Chartered announced that it is likely to meet its full-year operating profit forecast of $8 billion for 2013. This compares with last year’s figure of $6.88 billion. The bank is focused on emerging markets, with approximately three quarters of it earnings coming from its operations in Asia. Standard Chartered has two strings to its bow: firstly, it did not overextend itself on the run up to the global downturn, and secondly it has a market share in a region that is performing well.
Recently the People’s Bank of China provided liquidity to the overnight lending market, which boosted confidence in the region. This demonstrates that Beijing is willing to intervene to protect the economy if necessary.
Standard Chartered’s finance director, Richard Meddings, who was rumoured to be in line to replace Stephen Hester as the chief executive officer of Royal Bank of Scotland (RBS), has stated he is ‘very happy at Standard Chartered’. This indicates that he sees good growth prospects for the bank.