StanChart posts double-digit income growth in Q1

Noting that it got off to “an excellent start to the year”, Standard Chartered Plc today said it witnessed double-digit income growth in the first quarter of 2011, mainly on the back of good consumer as well as wholesale banking activities.

The Asia-focused bank said both its consumer banking and wholesale banking division posted “good momentum” in the quarter ended March 31.

“StanChart has enjoyed an excellent start to 2011, with good momentum in both businesses. We continue to benefit from the disciplined execution of our strategy and we remain very well-positioned in dynamic markets with strong fundamentals,” the Group Chief Executive Peter Sands said in a statement.

The bank, which has a significant presence in India, said that it had reduced its employees strength to keep expenses under control.

However, the banking entity has not disclosed the exact number of layoffs.

“We are maintaining a firm grip on expenses, with headcount levels at the end of the first quarter slightly below the level seen at the end of 2010,” StanChart said.

It further said that expenses were broadly in line with the second half of last year.

Standard Chartered had also cut its headcount by 800 to control costs in the first quarter of this year after hiring aggressively in 2010.

Bank said it was still on track to increase employee numbers by 1,000 from the beginning of the year but that it was holding off on replacing leavers.

Standard hired 7,000 staff last year, giving it about 85,000 at the start of 2011. The bank has faced questions over its rising costs.

Richard Meddings, the bank’s finance director, said: “We’ve got a good grip on expenses. This isn’t about cutting jobs.” In a trading statement, the bank said it made a strong start to the year.