A 300 per cent increase in profits, before taxes and provisions, to £45.0 million ($67.2 million) was recorded in 1993 by Standard Chartered Bank’s Middle East and South Asia division.
Profits after provisions but before tax were £21.0 million ($30.2 million). This compares with a loss of £262.0 million ($377.0 million) in 1992.
Regional total assets were £2,749.0 million ($4,105.6 million). The Middle East and India region contributed about 5 per cent of group consolidated pre-tax profit of £401.0 million ($598.8 million), 112 per cent higher than a year earlier.
The regional performance was enhanced by a more stable position in India and particularly good results in the UAE, where there were bigger volumes and margins in corporate banking and consumer finance, Standard Chartered Bank’s chairman Patrick Gillam said in comments released with the bank’s results on 10 March.
As a result, net interest income more than doubled to £68.0 million ($47.5 million). Previous results were badly affected by problems in the Indian securities markets. The bank has now recovered £34.0 million ($50.1 million) and no new provisions were required this year, Gillam said.
The region accounts for about 9 per cent of the UK bank’s group assets. Gillam says Standard sees considerable growth potential in the Middle East and India, markets managed by Standard’s Dubai office. Enhancing Standard Chartered’s position in the Middle East and southern Asia will be one of the bank’s key strategies in 1994, Gillam added.