Iran General NewsStandard Chartered set for record $7 billion profit despite...

Standard Chartered set for record $7 billion profit despite Iran fine

-

Reuters: Standard Chartered (STAN.L) is set to report its 10th successive record annual profit on Tuesday after strong growth in its core Asian markets offset a big fine for breaking sanctions on Iran. LONDON (Reuters) – Standard Chartered (STAN.L) is set to report its 10th successive record annual profit on Tuesday after strong growth in its core Asian markets offset a big fine for breaking sanctions on Iran.

A $667 million fine from U.S. authorities is likely to have wiped out much of the London-based bank’s growth last year, but profits should still rise 4 percent to $7 billion, according to the average forecast of 16 analysts polled by Reuters.

In a rare blip after a decade of buoyant growth and few problems, Standard Chartered was last year hit by a U.S. fine for moving millions of dollars through the American banking system on behalf of customers in Iran and three other sanctioned countries.

Standard Chartered has also voiced concern about an “avalanche” of extra regulation, particularly stricter liquidity rules being imposed by its home UK regulator.

Britain is imposing tougher capital and liquidity rules and a tax on bank assets that could land Standard Chartered with a bill of more than $320 million this year, reviving speculation it could look to move its headquarters from London to Asia.

An EU plan to cap bonuses at no more than twice an employee’s salary could also hamper the bank’s pay structure.

Standard Chartered (2888.HK) has ridden Asia’s rise through much of the last decade, allowing it to continue hiring and increasing earnings when much of the industry is shrinking.

The bank, led by former McKinsey consultant Peter Sands for more than six years, is expected to have added about 2,000 staff in 2012 and has said it could expand by a similar amount this year, although it plans to keep cost increase below its rise in income.

The bank’s annual results are expected to show strong growth in Malaysia, China and Indonesia and mirror its rival HSBC (HSBA.L) with buoyant earnings in its biggest market, Hong Kong.

Standard Chartered’s business in India, which accounts for about 10 percent of profits, is expected to show a drop in income, and there remain risks that revenues there will stay sluggish this year, analysts said.

(Reporting by Steve Slater; Editing by Mark Potter)

Latest news

Frustration of Iran’s Middle Class

These days, the middle class of Iran still maintains its cultural conditions, but economically it has collapsed into the...

Hamid Noury Contradicts His Own Testimony During His Trial

The fifth day of former Iranian prison official Hamid Noury’s own testimony at his trial in Sweden took place...

Iran: Militarization of the Country’s Education

After months of contention about the position of the minister of education, the Iranian regime’s president Ebrahim Raisi finally...

As Thousands of Iranian Prisoners Were Executed in the 1988 Massacre, the World Remained Silent

With the trial of former Iranian prison official Hamid Noury still ongoing in Sweden, proceedings were briefly expedited to...

Even a Revived JCPOA Will Not Save Iran’s Government

Since the beginning of the Iranian regime’s nuclear crisis, which was revealed by the Iranian opposition group, the MEK,...

Iran’s 1988 Massacre Will Never Be Erased From History

As the trial of former Iranian prison official Hamid Noury races forward in Sweden, supporters of the Iranian Resistance...

Must read

Iran’s Mottaki says map comments about Palestinians

Reuters: Iran's foreign minister said on Saturday he had...

Is Iran readying for war?

Middle East Times: New information from inside Iran reveals...

You might also likeRELATED
Recommended to you