S&P: Standard Chartered Bank unaffected

Standard & Poor's said its ratings on Standard Chartered Bank (Hong Kong) Ltd. (A/stable/A-1) are not affected by the bank's announcement of improved net profit.

The bank's pro forma net profit increased by 30.9 % in 2004 to Hong Kong dollar 3.7 billion from HK $2.9 billion in 2003. The growth was mainly generated by a HK $1.3 billion decrease in loan loss provision expenses, which is very unlikely to be repeated in 2005, according to S&P.

While the bank's net interest income decreased because of margin pressure, S&P said growth in fee and commission income and the contribution from treasury activities partly offset the pressure on revenue and helped to further diversify the bank's income sources.

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