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Standard Chartered probes Brexit implications as profits fall 46% to £750m

Published 03/08/2016

Standard Chartered chief executive Bill Winters is overseeing a restructure at the bank (Standard Chartered/PA)
Standard Chartered chief executive Bill Winters is overseeing a restructure at the bank (Standard Chartered/PA)

Standard Chartered has established an executive committee and working group dedicated to assessing the implications of Brexit to the lender.

The London-listed bank said that while Britain's decision to leave the European Union has "clearly added to uncertainty in the market", it has had limited negative impact on the group given that it is predominantly Asia-focused.

"We managed the immediate risk with a neutral impact to the group in terms of liquidity, market and credit risk following Brexit. Market sentiment post the vote continues to be cautious and uncertain.

"The group is looking at the practical implications of Brexit on our portfolios and clients - both in UK and non-UK exposures."

Standard Chartered made the announcement alongside results for the first half of the year, which saw pre-tax profits fall 46% to 994 million US dollars (£750.3 million) compared with the same period last year.

Income declined 20% to 6.8 billion US dollars (£5.1 billion).

However, the figures were a significant improvement on the preceding six months, when the lender slumped to a loss.

Chief executive Bill Winters, who is overseeing a restructure at the bank, said: "We have made good progress in the year since I joined, strengthening our bank, becoming more efficient and investing in our future.

"By maintaining our financial strength and completing our transformation we will be able to weather near-term volatility, fix our legacy issues, capture significant underlying opportunities as they arise, and, in time, generate returns above our cost of capital. The environment remains challenging but we are getting on with the plan."

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