Standard Chartered PLC upbeat about prospects as economic recovery builds

 A best-ever quarter for its wealth management business helped Standard Charted Bank PLC () offset reduced income and increase profits by 59% in its latest quarter.

Like its peers, the Asia -focused bank got a boost from a much-improved economic backdrop in most areas where it operates.

That has enabled it to reduce its forecast for potential bad debts on its loan book and profits in the three months to end-March rose to US$1.41bn (US$886mln) as the impairment charge dropped to US$17mln from US$962mln a year ago.

Otherwise, the bank had to battle lower interest rates with income dropping 9% to US$3.9bn and expenses rising 6% to US$2.5bn as it paid out more in bonuses.

Standard Chartered added it expects expenses over the year will rise further as it upgrades its digital capabilities but should remain below US$10bn at constant currency.

The tailwind from lower impairment charges should also continue as countries recover from Covid-19, it added.

Bill Winters,  chief executive, said: “Our first-quarter performance was strong.

“Economic recovery advanced in many of our markets leading to improved transaction volumes and profitability.

“This was particularly the case in our Financial Markets and in Wealth Management, which had its best-ever quarter.

“Despite low-interest rates, we expect our underlying momentum to lead to income growth in the second half of 2021.”