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Standard Chartered Profit Slips As It Confirms NY Regulatory Probe

August 6, 2014

Samuel Agini

LONDON (Alliance News) - Standard Chartered PLC Wednesday reported a small slip in half-year pretax profit, with the decline limited thanks to the non-repeat of a USD1.0 billion goodwill impairment charge for its Korea business, though its operating performance was hit by a weaker performance in its financial markets division.

In a statement, the emerging markets-focused bank said it made a USD3.25 billion pretax profit in the six months ended June 30, compared with USD3.33 billion in the corresponding period last year. Before own-credit adjustments and the goodwill impairment last year, pretax profit fell by 20% to USD3.27 billion.

Standard Chartered said it will pay a flat interim dividend of 28.80 cents per share.

"Whilst our first half performance is clearly not as good as in previous periods, we have taken assertive action to manage short-term performance issues, and to position the group to take advantage of considerable long-term growth opportunities we see across our markets. We have taken market share in a number of core products as we continue to support the growth aspirations of our clients," Chairman John Peace said in a statement.

Standard Chartered also confirmed that "certain issues" have been identified with its post-transaction surveillance system, which is part of its anti-money laundering systems and controls and is separate from its sanctions screening systems. It said it is in discussions with the New York Department of Financial Services and the independent monitor over the issues.

"The group believes that the resolution of these issues is likely to involve an enforcement action by the NYSDFS that would include an extension of the term of the Monitor beyond the original two-year term, a monetary penalty and remedial actions," Standard Chartered said in a statement.

Standard Chartered shares are up 0.1% at 1,217.50 pence following its report.

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Source: Alliance News

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