Standard Chartered’s long journey to recovery seems to working as it garnered $3bn in profit before tax in 2017.
Compared to a net loss of $478m in 2016 and a staggering $2.36bn net loss in 2015, the global bank’s fortunes are improving.
Profit before tax grew 175% year-on-year.
Regulatory costs rose 15% for the group, to hit $1.3bn, with several large programmes including MiFID II and IFRS 9 being implemented.
The retail banking segment of Standard Chartered delivered $873m profit before tax, 14% growth year-on-year, as well as a 2% return on its $44bn of risk weighted assets.
Greater China and North Asia was the region was the greatlest level of growth at 10% year-on-year. Income in ASEAN and South Asia grew 4%, but the Middle East and Africa remained flat.
Standard Chartered’s branch network has shrunken slightly in the past year. It has decreased from 1,109 branches in 68 markets in 2016 to 1,026 branches in 63 markets in 2017. This has been attributed mainly to the firm leaving markets such as the Philippines and Thailand.
On the other hand, the number of retail banking customers that were digitally active grew from 40% to 45% year-on-year.
Bill Winters, group chief executive of Standard Chartered, said: “The transformation of the Group continued in 2017 with the significant improvement in underlying profits, a strong capital position and emerging clarity on regulatory capital requirements allowing us to resume paying dividends. We are encouraged by our start to 2018 and remain focused on realising the Group’s full potential.”