Standard Chartered said it made a strong start to 2009 after posting a 19 per cent profit rise, and predicted an economic downturn in its key Asia region would be "shorter and shallower" than in the west.
The bank, which gets two thirds of its revenue from Asia, said today it had made a strong start to 2009, especially in its wholesale banking division.
That sent its shares as much as 13 per cent higher, before concerns about consumer banking pared gains.
"Asia will obviously see a sharp correction in economic performance. But I think it will be shorter and shallower than what you will see in the west," chief executive Peter Sands said on a conference call.
"The ingredients of the deleveraging spiral and financial crisis in the west aren't present in most countries in Asia to anything like the same extent," he said.
Standard Chartered posted a 2008 pretax profit of $4.8 billion. Profits were aided by a $233 million gain on an option related to its rights issue in December, leaving underlying profits up 13 per cent, in line with the average forecast of $4.6 billion on Reuters Estimates.
"These results appear the best we have seen this results season. However, trends into 2009, especially in consumer banking and corporate asset quality are weakening," said Alex Potter, analyst at Collins Stewart.
By 11am, Standard Chartered's London shares were up 3.2 per cent at 606 pence, outperforming a 2 per cent fall for the European bank index.
Standard Chartered said 2009 had started well, with wholesale banking having a "very strong" January and also a "strong" February.
Its consumer bank's income was "slightly below" the average run rate in the second half of last year and faces a more difficult outlook, however. Standard Chartered said it had "embarked on a radical reshaping of the business", aiming to cross-sell more products to customers.
The consumer bank's operating profit fell by one third last year, compared with a 28 percent jump in wholesale.
Mr Sands said he was "very comfortable" with the bank's capital position, which he said improved in the second half even without the benefit of a rights issue.
Standard Chartered raised $2.7 billion from the cashcall, helping lift its core tier 1 capital ratio to 7.6 per cent at the end of December, from 6.6 per cent, above most European rivals.
Reuters