Standard Chartered lowers revenue forecast
Asia-focused emerging markets bank Standard Chartered said on Thursday that it was lowering its annual revenue forecast to just below 10 percent owing to a rise of the US dollar.
"Asian exchange rates continue to depreciate against the US dollar, and whilst we have seen continued good execution of a strong pipeline in difficult market conditions, income in 2011 for the group is now expected to grow at just below a double digit rate," Standard Chartered said in a statement.
The bank had last month forecast double-digit growth.
"Since the time of the third quarter interim management statement, Asian exchange rates have depreciated further by between one percent and five percent," the lender added.
Despite the downgrade, the bank's chief executive Peter Sands said the group was "on course to deliver another strong set of full year results."
He added: "Income growth remains resilient and well diversified, underpinned by high levels of activity across our businesses.
"We have continued to invest to underpin future income momentum; the credit environment remains relatively benign across our footprint.
"We continue to focus on the basics of banking, on maintaining a very strong balance sheet, as well as on the continued disciplined execution of our strategy.
"Our consistent performance and balance sheet resilience have been recognised by both the market and by the rating agencies. We have now been upgraded by all three rating agencies since the beginning of the financial crisis. The growth prospects of our markets in Asia, Africa and the Middle East remain intact despite the increasing uncertainty in the West," Sands said.
© 2011 AFP