(From left to right): Standard Chartered Hong Kong CEO Mary Huen, Group Chairman Jose Vinals, Asia CEO Benjamin Hung and Asia CFO Saleem Razvi attended Friday press conference introducing 2023 half year results (PHOTO / Oswald Chan)

UK-based Standard Chartered is committed to staying connected with Hong Kong and making investments in capacity and people to contribute to Hong Kong becoming an even more formidable international financial center.

“This is my third visit to Hong Kong since the reopening, which is a testament to Standard Chartered's strong commitment to the city. Our determination to work hard and invest in our technical capabilities, products, services, and people is aimed at contributing to the development of Hong Kong as an even more permeable and formidable international financial center in the future,” Standard Chartered Group Chairman Jose Vinals said at Friday’s press briefing, held to outline the group’s interim results to June 30.

The banking group announced a further share buyback program of $1 billion, which will commence imminently and run concurrently with the latter stages of the current program

“These good results of record highs are not only for Hong Kong and Asia but also for the group over the last 10 years. They are a testament to a very important transformation that has happened to the bank in recent years, which now positions Standard Chartered as a leading institution,” the chairman added.

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Standard Chartered on Friday announced its statutory profit before taxation posted an annual growth rate of 20 percent to reach $3.32 billion for the first half of 2023, the highest level since 2015. The bank declared an interim dividend per share of $6 cents, registering a year-on-year growth of 50 percent. The net interest margin was 1.67 percent in the period. Credit impairment decreased 35 percent to $172 million.

The banking group announced a further share buyback program of $1 billion, which will commence imminently and run concurrently with the latter stages of the current program. 

The Hong Kong business of the banking group generated a record-high profit before taxation of over $1.01 billion, skyrocketing 1.66 times. Hong Kong has been the banking group’s largest income contributor for 20 consecutive years.

“Looking ahead to the full year, while we believe that growth in Western countries will continue to slow, Asia will be the main driver of economic growth due to its unique advantages,” Standard Chartered Asia CEO Benjamin Hung said.

The bank’s performance in the second half of this year depends on the pace of US interest rate hikes. “It is difficult to determine whether there will be another interest rate hike. Overall, the cycle of interest rate increases is nearing its end. As for whether interest rates will remain at a high level and when they will begin to fall, it is difficult to say for now and will depend on the inflation and employment data. If the high interest-rate environment lingers, banks may increase their provisions for potential bad debts,” Hung added.

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“Hong Kong's interest rates closely follow those of the United States, and the spread between the prime rate and the HIBOR (Hong Kong Interbank Offered Rate) is very narrow, so that the prime rate may increase. Different banks need to make their own decisions based on their balance sheets, strategies, and customers' needs,” Standard Chartered Hong Kong CEO Mary Huen said.