LONDON, Oct 26 — Asia-focused British bank Standard Chartered revealed today that it sank into the red in the third quarter on vast China-linked charges, sending its share price tumbling.
Standard Chartered fell into a net loss of US$35 million (RM167 million) in the three months to September.
That contrasted with profit after tax of US$964 million in the same part of last year, it said in a results statement.
Income rose six per cent to US$4.4 billion on rising global interest rates.
However, the performance was skewed by nearly US$900 million in charges linked to Standard Chartered’s exposure in China.
That included a US$700-million impairment on its stake in China Bohai Bank, which it said faces “subdued” earnings and a “challenging” macroeconomic outlook.
The news sent Standard Chartered shares diving ten per cent to 642 pence, topping the fallers board on London’s sliding stock market.
“China remains both a blessing and a curse for Standard, with the country’s faltering economic recovery weighing heavily on these results,” said Richard Hunter, head of markets at Interactive Investor.
“These provisions have driven a bus through earnings,” he added. — AFP
