Standard Chartered blames weak emerging markets for sales dip

Standard Chartered’s custody income took a hit in 2016 which the bank is attributing to a weaker investment environment across emerging markets.
By Paul Walsh
Standard Chartered has revealed a drop in custody income in its 2016 annual results.

Cash management and custody income stood at $1.68 billion compared to $1.76 billion at the same time in 2015.

The custodian bank has put the drop down to a weaker investment environment in emerging markets.

A reduction in cash management income is also being put down to the impact of lower balances, despite improved margins from higher central bank rates in the US, and a change in mix towards high quality operating account balances.

Other figures reveal transaction banking income fell 11% year-on-year from $3.25 billion in 2015 to $2.88 billion in 2016.

“We are attacking our cost base, reinvesting significantly to strengthen our competitive advantages and continuing to enhance our financial crime controls,” said Bill Winters, group chief executive at Standard Chartered.

“Our financial returns are not yet where they need to be and do not reflect the group’s earnings potential. Having worked hard to secure our foundations we are now focused on realising that potential,” said Winters.