HONG KONG/LONDON: Normal Chartered mentioned third-quarter revenue slid 40% on greater credit score impairment ensuing from the coronavirus pandemic and decrease rates of interest, though a tighter rein on prices helped it beat expectations.
Underlying pretax revenue got here in at $745 million for the three months ended Sept. 30, down from $1.24 billion a yr in the past, however above the $502 million common of analysts’ forecasts compiled by the financial institution.
“Decrease rates of interest proceed to affect earnings however we stay well-positioned to satisfy our monetary targets, albeit with some delay,” Chief Government Invoice Winters mentioned in an earnings assertion.
The pandemic has introduced on an ideal storm for a lot of world banks, propelling them to chop prices and restructure additional as unhealthy loans mount, lending margins are squeezed and rates of interest hit rock-bottom and even flip unfavourable.
StanChart, which is concentrated on Asia, Africa and the Center East, introduced final month it will merge a number of companies and reduce its variety of senior executives.
Each StanChart and rival HSBC , whose shares have practically halved in worth this yr, are additionally grappling with political uncertainty in Hong Kong – a key marketplace for each of them.
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