STANDARD Chartered, the London-based bank which does most of its
business in Asia, the Middle East and Africa, yesterday revealed a 27%
rise in 1994 profits, helped largely by cost-cutting and lower bad
debts.
Pre-tax profit rose to #401m from #510m in 1993, and was up by 36%
before exceptional items.
''These are record results. We have grown our operating profits and
reduced our costs,'' chairman Patrick Gillam said.
The bank said it had not been affected by the Barings debacle. It had
reviewed to its satisfaction management controls and audit procedures
after the collapse of Barings from massive trading losses at the British
merchant bank's Singapore financial futures and options trading unit.
''It would be a very strange business indeed that didn't pause and
check again as a result,'' finance director Peter Wood said.
He said that although Standard has a futures brokerage in Singapore
and trades financial derivative instruments for currency hedging and
interest rate swaps it is not a speculative trader.
''We are not a major derivatives participant -- even in interest rate
derivatives,'' he added.
Bad and doubtful debts fell to #122m from #233m, making profit before
charges of #627m against #613m in 1993, the bank held costs at just
below 1993 levels and reduced its headcount in the year to 28,200 from
30,500.
The dividend total is increased 33% to 8p and earnings per share rose
to 32.7p from 24.1p. -- Reuter.
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