Standard Chartered has announced that its pre-tax profit failed to rise for the first time in 10 years in 2013.
The UK headquartered bank declared a profit before tax of $6.9bn in 2013 down 7% from $7.5bn in 2012.
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Operating profit at the bank fell sharply by 11.4% to $1.55bn in 2013 from $1.75bn in the previous year.
Customer advances increased 4% to $296bn from $285bn in 2012 and customer deposits increased 2% to $391bn from $385bn in 2012.
Peter Sands, the group chief executive, said: "2013 was not a great year for Standard Chartered, and 2014 will inevitably have its own challenges, but we are very clear on what we have to do. We are making changes to adapt to the new realities.
"We have a strong balance sheet, great client relationships and superb capabilities."
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By GlobalDataOther positive metrics for the bank included:
- A rise in loan-to-deposit ratio of 180 basis points to 75.7%, up from 73.9% in 2012;
- Hong Kong, the bank’s largest market, grew revenue 11% ($151m) $1.5bn while operating profit rose $83m, or 15%, to $627m, and
- Assets at the bank rose to $674.4bn from $631.2bn in 2012.
Less positive figures were:
- A rise in cost income ratio to 54.4% from 53.7% in fiscal 2012;
- Operating profit fell to $1.5bn from $1.7bn in 2012, remaining level or falling in every market although bolstered by a strong performance in Standard Chartered’s core market of Hong Kong;
- The banks South Korean division moved to a loss of $162m for 2013, compared to a profit of $164m in 2012. Sands attributed this to a sharp fall in the banks consumer banking performance, given elevated levels of impairment, up 66%, and income falling by 12%, and
- Bad loan losses rose to $1.62bn, from $1.2bn in 2012.
Last year the bank abandoned a sales growth target of at least 10%.
Standard Chartered chairman, John Peace, said: "2013 was a challenging year, for the industry and for Standard Chartered, but the bank remains an exciting growth story.
"We are focused on driving profitable growth, delivering further value for shareholders. The Group has an excellent balance sheet, remains well capitalised and continues to support our clients as they seek to invest and expand across Asia, Africa and the Middle East."
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