Emerging market-focused bank Standard Chartered has revealed a 4% increase in its operating income for cash management and custody, after the full year financial results revealed that it made $1.248 billion in 2009 from this side of the business and $1.303 billion 2010.
“Cash and Custody income also continued to be impacted by margin compression but continued success in winning new mandates and the resultant growth in average balances of 21% enabled the business to end the year with a 4% increase in income,” said the bank in the financial results report.
Lending and Portfolio Management income increased marginally by $19 million, or 2% to $868 million with an increase in lending balances and related fees offset by margin pressure. Whilst the first half saw improved margins through re-pricing, the latter half has seen a softening of margins with year on year margins down 4 bps. Income from trade grew 14 per cent with higher assets and contingents of 28% partially offset by a 37 bps reduction in margins.
Overall, profit before taxation rose by 19% and stood at $6.1 billion in 2010 from $5.15 billion in 2009. Operating income stood at $16.06 billion in 2010, up 6% from 2009, while total assets also increased by 18% to $517 billion for last year.
Between 31 October 2010 and 5 December 2010, Standard Chartered acquired the custody business of Barclays Bank plc across various locations in Africa. However the group say the effects of the above acquisitions were not material in Standard Chartered’s 2010 performance.