Standard Chartered (StanChart) reported a 7% YoY rise in Q1 2022 net profits to $1.18bn. Net interest income was up 8% to $1.79bn and non-interest income was up 10% to $2.48bn. The bank reported a $200mn credit impairment charge as compared to a $20mn charge during the same period last year. Results were supported by a 7bp jump in net interest margins to 1.29%. Also, operating profit in Middle East, Africa hit a near 10Y high, up 59% to $302mn. However, closures of its branches amid ongoing Covid restrictions in China saw its wealth management income decline 18%. Its financial markets business reported a 32% pick-up in income, benefitted from macro trading reporting a record quarter after capitalizing on the volatility in energy prices. StanChart took a $107mn charge due to Sri Lanka’s downgrade, and another $160mn charge on its exposure to the Chinese property sector. StanChart’s CET1 ratio fell 10bp YoY to 13.9%
StanChart’s USD 6% Perp was down 0.4 points to 100.23, yielding 5.92%.