Standard Chartered bank falls into red on China
by AFP Staff Writers
London (AFP) Oct 26, 2023

Asia-focused British bank Standard Chartered revealed Thursday that it sank into the red in the third quarter on vast China-linked charges, sending its share price tumbling.

Standard Chartered fell into a net loss of $35 million (33 million euros) in the three months to September.

That contrasted with profit after tax of $964 million in the same part of last year, it said in a results statement.

Income rose six percent to $4.4 billion on rising global interest rates.

However, the performance was skewed by nearly $900 million in charges linked to Standard Chartered's exposure in China.

That included a $700-million impairment on its stake in China Bohai Bank, which it said faces "subdued" earnings and a "challenging" macroeconomic outlook.

The news sent Standard Chartered shares diving ten percent to 642 pence, topping the fallers board on London's sliding stock market.

"China remains both a blessing and a curse for Standard, with the country's faltering economic recovery weighing heavily on these results," said Richard Hunter, head of markets at Interactive Investor.

"These provisions have driven a bus through earnings," he added.

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