Standard Chartered HK sees 18% rise in H1 pre-tax profit

Standard Chartered's underlying pre-tax profit for the first half of the year was $3.957 billion, up 20% year-on-year. The Hong Kong business remained the largest contributor, recording a profit of $1.206 billion, an increase of over 18% year-on-year. Operating income was $2.3 billion, up over 10% year-on-year. Credit impairment was $93 million, narrowing by over 15% year-on-year.

Standard Chartered's business in China reported an underlying pre-tax profit of approximately $200 million for the first half of the year, a nearly 9% decline year-on-year. Operating income was $660 million, up 12% year-on-year. Credit impairment was $87 million, rising nearly 1.5 times year-on-year.

The group's underlying total operating income for the first half of the year increased by 11%, and by 13% at constant exchange rates.

Income from mortgage and other secured lending fell by 14%, mainly due to a decrease in mortgage volumes in Hong Kong and South Korea. Rising interest rates also impacted the profitability of these businesses, partly because the cap on Hong Kong's prime rate limited the ability to reprice mortgages.