London: Standard Chartered posted stronger-than-expected first quarter results and said restructuring costs were in line with its plans, lifting its shares by 10 per cent on Tuesday.
Chief executive Bill Winters said the results, including a bumper statutory profit that was more than double the previous quarter, reflected "good progress on our strategic objectives".
Investors responded positively to the emerging markets-focused bank's pretax profit of $589 million, against a loss of $4.05 billion in the final quarter of 2015, driving the bank's shares up 10.2 per cent to 573.5 pence by 0905 GMT (2:35 p.m. in India).
The positive result marks a welcome rebound for Standard Chartered shareholders after the bank reported its first full-year annual loss in 26 years in 2015, hit by hefty restructuring costs and weak commodity prices.
Standard Chartered is the first of the major UK-based banks to report first quarter earnings, with investors braced for one of the worst collective set of results since the financial crisis.
The London-based bank said its first quarter income was down 24 per cent to $3.3 billion on the first quarter of 2015, but it was broadly stable compared to the fourth quarter last year.
Its Common Equity Tier 1 ratio had risen 50 bps to 13.1 per cent since the end of the year-end, benefitting from a reduction in risk-weighted assets (RWA), rising profits and a gain on foreign currency moves, it added.
Total operating expenses were down 10 per cent year-on-year to $2.2 billion and the bank said it remained on budget with a sweeping restructuring plan across its Asian, African and European business.
Former JPMorgan investment banker Mr Winters announced plans to axe 15,000 jobs and raised $5.1 billion in capital in November in a bid to cut costs and bolster reserves.
"We remain confident in the estimated total cost of our planned restructuring...of around $3 billion to be incurred before the end of 2016," the bank said in a statement.
Chief executive Bill Winters said the results, including a bumper statutory profit that was more than double the previous quarter, reflected "good progress on our strategic objectives".
Investors responded positively to the emerging markets-focused bank's pretax profit of $589 million, against a loss of $4.05 billion in the final quarter of 2015, driving the bank's shares up 10.2 per cent to 573.5 pence by 0905 GMT (2:35 p.m. in India).
The positive result marks a welcome rebound for Standard Chartered shareholders after the bank reported its first full-year annual loss in 26 years in 2015, hit by hefty restructuring costs and weak commodity prices.
Standard Chartered is the first of the major UK-based banks to report first quarter earnings, with investors braced for one of the worst collective set of results since the financial crisis.
The London-based bank said its first quarter income was down 24 per cent to $3.3 billion on the first quarter of 2015, but it was broadly stable compared to the fourth quarter last year.
Its Common Equity Tier 1 ratio had risen 50 bps to 13.1 per cent since the end of the year-end, benefitting from a reduction in risk-weighted assets (RWA), rising profits and a gain on foreign currency moves, it added.
Total operating expenses were down 10 per cent year-on-year to $2.2 billion and the bank said it remained on budget with a sweeping restructuring plan across its Asian, African and European business.
Former JPMorgan investment banker Mr Winters announced plans to axe 15,000 jobs and raised $5.1 billion in capital in November in a bid to cut costs and bolster reserves.
"We remain confident in the estimated total cost of our planned restructuring...of around $3 billion to be incurred before the end of 2016," the bank said in a statement.
© Thomson Reuters 2016
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