Bookmark & Share
STANDARD Chartered Bank Singapore grabbed a 20 per cent share of new mortgages in the first six months of this year, chief executive Lim Cheng Teck said yesterday.
He shared this as he unveiled the unit's earnings for the first half ended June 30. Pre-tax profit rose 36 per cent from a year back to US$430 million, driven largely by robust wholesale banking results.
Income from the wholesale banking division jumped 67 per cent year on year to US$581 million as corporate finance, trade and fixed-income activity grew. This hoisted pre-tax profit 85 per cent to US$287 million.
The consumer banking business did not fare as well. Income was flat at US$302 million, partly because of lower wealth management earnings as investors shunned unit trusts and equity-linked notes.
Earnings from SMEs also fell, as trade flows slowed and government guarantee schemes squeezed margins.
But mortgage income grew sharply and 'that more than compensated for the reduction in wealth management and SME revenue', Mr Lim said.
In the first half of the year, Stanchart Singapore issued mortgages worth US$6.69 billion, up 23 per cent from a year ago. Product innovation boosted growth, Mr Lim said.
More private homes have also been snapped up in the last few months, fuelling demand for loans. Mr Lim said that activity is largely in the mass-market segment, which tends to attract owner-occupiers. He also added that with different loan guidelines for occupiers and investors, he is 'very comfortable with the quality of the book'.
The consumer banking division recorded impairments of US$19 million - more than nine times the sum a year ago, with the SME segment accounting for most of the increase. The division's pre-tax profit slid 12 per cent to US$143 million.
'We believe the worst is over but I think there is going to be much more volatility in the months ahead,' Mr Lim said.
Interest in simple investment products is gradually returning, he said. And while impairments are unlikely to have peaked, they should not increase significantly.
Search Property News
