Stanchart’s Corporate, Commercial and Institution segment breaks into profitability
The segment emerged from a marginal loss in the prior year to record a PBT of P57 million.
Standard Chartered Bank revealed that its Corporate, Commercial and Institutional segment saw a 28 percent income growth year-on-year as the commercial sub segment broke into profitability. The bank says a strong run in client transactions, including Corporate Finance delivered a 10 percent growth in non-funded income, with another 4 percent growth in trade income coming from currency trades. There was also a strong conversion rate on the lending business including trade facilities, resulting in a 7 percent growth in margin income. Costs were contained closely to a 4 percent reduction, although credit impairments grew 2.9 times to P20 million mainly driven by Covid-19 impacts on clients. However, there were no significant write offs. The segment emerged from a marginal loss in the prior year to record a PBT of P57 million.
The Retail segment – renamed to Consumer, Private and Business Banking – registered a 3 percent growth in income, driven by a 6 percent growth in client assets. Non-interest income was 4 percent down on account of substantially reduced transaction volumes during lockdown periods, the bank says. However, the bank says the non-funded income base was expanded during the year with a successful rollout of Cash Depositing Machines across the country, a main feature of the Bank’s reconfigured client interface centres (Express Banking Centres or EBCs). The bank says these unique hybrid channels come with increased convenience for clients, but a lower cost to the Bank. Overall segment profitability was down on account of once off provisions in 2020.