Standard Chartered’s Sands Sees Less Revenue Drag From CurrencyStephanie Tong
Standard Chartered Plc, the U.K. bank which earns most of its profit from Asia, said currency depreciation in the region will be less of a drag on revenue this year than in 2012.
The Indian rupee fell 3.5 percent last year against the dollar, the currency in which Standard Chartered reports its earnings. The rupee contributed “over half of the drag in income,” Peter Sands, chief executive officer at the London-based lender, told reporters in Hong Kong today.
Operating income at Standard Chartered increased 8 percent to $19.1 billion last year, and would have grown by 10 percent on a constant currency basis, the bank said March 5. Standard Chartered is trying to attain revenue growth of at least 10 percent while keeping expenses under control as it hires and adds branches in China and Africa.
“The reduction in Asian currencies’ value did actually slow down the pace of our growth last year,” Sands said. “We’re not expecting that to be nearly such a negative headwind in 2013.”