Record start at StanChart

STANDARD Chartered has enjoyed record income and pre-tax operating profit so far this year, the bank said yesterday in a trading update, as it announced it had cut 2,500 jobs.

The bank, which focuses on emerging markets, said income growth had been boosted by a strong performance in wholesale banking, although income in consumer banking was slightly down.

Chief executive Peter Sands said the bank had delivered a “strong performance” but was cautious about the prospects of a global financial recovery.

“Although there are tentative signs of improving economic conditions in some of our markets, equally there are signs of continuing stress,” he said.

Sands said the bank had benefited from a conservative business model and from the relatively low impact of the financial crisis on the emerging nations where Standard Chartered does the majority of its business.

But impairment levels rose in the second quarter of the year as customers suffered “increased levels of stress”.

The 2,500 jobs have already been cut as part of an ongoing cost cutting programme, the bank said.