Standard Chartered smashes $2bn barrier

EMERGING markets banking giant Standard Chartered signalled a pause in its acquisitions spree today after smashing the $2bn (£1.1bn) profit barrier for the first time in its history.

Chief executive Mervyn Davies said the group's shortterm aim now was to work on the successful integration of Korea First Bank, which it picked up last month with a $3.3bn bid.

Standard has spent $7bn on buying up Asian bank assets in the past six years, three times the outlay of HSBC, and is the largest foreign bank in Asian mortgages.

Davies hopes to complete the KFB acquisition by April and insisted that despite concerns about the move in the City, where some feel Standard overpaid, it was 'great deal'.

Standard hopes KFB will be earnings boosting from next year and already has plans to use its mobile and internet banking technology across the rest of the business.

Full-year results today showed pre-tax profits in the 12 months to 31 December rose 39% to $2.2bn on the back of a 13% jump in net revenue to $5.4bn. The debt charge fell 60% to $214m.

The bank achieved its target of a 20% return on equity, up from 15.7% a year ago. Davies refused to be drawn on whether the family of Singapore-based billionaire Khoo Teck Puat, who died last year, may sell its 13.2% stake in the group.

Davies said: 'It's up to them what they do with the shares, they have been long-term supportive shareholders.'