The New Nation - Internet Edition

StanChart's pre-tax operating profit reaches record $4.04b

BUSINESS REPORT

Standard Chartered (StanChart) PLC made another strong performance for the year that ended December 31, 2007 with operating profit before tax (OPBT) rising by 27 per cent to a record $4.04 billion and operating income increasing 28 per cent to $11.07 billion.

Normalised earnings per share increased 16 per cent to 197.6 cents.

The board announced a dividend of 79.35 cents per share, up from 71.04 cents for 2006. Growth in underlying income was at 23 per cent against 18 per cent, with 80 per cent of the operating income growth coming from organic businesses.

Both wholesale and consumer banking showed strong income momentum across all client segments and product categories, with both businesses contributing well over $1 billion of incremental income for the year. Both the businesses increased OPBT by 27 per cent.

StanChart Group's Chief Executive, Peter Sands, said: "Despite the turbulence, shocks and uncertainties in financial markets, we have once again delivered record profits. We haven't done this by slowing down or squeezing the businesses-we invested behind both our wholesale and consumer banking businesses at record levels last year. There is more breadth and scale in the Group and our strong performance in 2007 is spread across multiple products and multiple geographies."

Many of the key markets in the Standard Chartered network delivered performance at record levels. Hong Kong, the Group's largest market, increased PBT by 34 per cent, India by 71 per cent, Singapore 54 per cent, China 72 per cent, Other Asia Pacific Region by 175 per cent, while Africa posted a 55 per cent increase in pre-tax profits. Korea showed strong underlying income momentum which rose in double digits on an adjusted basis, but due to an accounting treatment of foreign exchange hedges posted 29 per cent lower PBT.

FINAL

Other highlights from key markets include: Over $2 billion income and $1 billion PBT in Hong Kong for the first time, with income growing at a 7-year high.

India made more profits in 2007 than in 2006 and 2005 put together, with Wholesale Banking India emerging as the largest business in the franchise

Among the first foreign banks to locally incorporate in China, and nearly doubling staff strength

Wholesale Banking had a yet another strong year with significantly higher business volumes and income momentum, and across all client segments and key markets, with operating income rising 34 per cent. From a product perspective, Global Markets achieved 41 per cent growth, Cash Management and Custody 31 per cent and Trade and Lending income grew by 23 per cent.

During the year, Wholesale Banking became a core bank to more of our clients - we increased by 93 per cent the number of clients which generate over $5 million of income per year and by 59 per cent those that generate over $1 million.

Consumer Banking recorded an operating income growth of 24 per cent, with 1200 new product initiatives last year against 840 in 2006. Income growth is now increasingly well diversified with nine markets contributing $200 million or more in income.

Wealth Management was the largest contributor with over 45 per cent of the total Consumer Banking income, and rose 35 per cent last year. Private Banking was launched in 10 locations across seven markets.

Significant investments were made last year to expand distribution reach in core markets -over 70 new branches, 30 SME centres, 20 Consumer Finance outlets and more than 400 ATMs were launched in 2007.

There were two one-off items that in aggregate added over $215 million to income, comprising a foreign exchange gain on the repatriation of capital from the Singapore branch following regulation change, and a valuation gain on shares the Group received in the restructuring of Visa Inc. But offsetting these gains were charges totalling $300 million as a result of the current financial market dislocation, and more due to the accounting treatment of foreign exchange hedges in Korea.

Richard Meddings, Group Finance Director, said: "The strength of the Group's performance has been such that even having taken the net negative impact of these items, operating profit before tax has risen 27 per cent surpassing $4 billion for the first time. We are extraordinarily well placed to capture the huge opportunities in our markets."

Standard Chartered has no direct exposure to US sub-prime assets, and very limited indirect exposure. The Group's liquidity and capital position are strong. At the height of the market dislocation in September 2007, the Group raised $2 billion of Tier II capital which was over-subscribed more than five times. The Group is running above target ranges for both Tier 1 capital and total capital. Under Basel II, Tier 1 capital is within the stated target range of 7-9 per cent and total capital above the range of 12-14 per cent.

In the second half of 2007, the Group announced the acquisition of five companies-UTI Securities, a broking and advisory firm in India; Pembroke, a specialist in aviation finance; Harrison Lovegrove, an oil and gas advisory boutique; A Brain, a fund administration company in Korea; and American Express Bank, which will fast-track two core businesses - Private Banking and Financial Institutions - and add 19 new markets to the footprint. Standard Chartered started 2008 with another small acquisition - that of Yeahreum, a mutual savings bank in Korea.

Sands added: "We ended 2007 with strong momentum in both businesses and the Group has had an excellent start to 2008, particularly in Wholesale Banking which had a record January. The Bank is in great shape, the foundations are firm. We will keep investing to sustain our organic growth momentum. 2008 will undoubtedly be testing, but it will also be exciting with new opportunities emerging alongside new risks."

DBBL to install ATM booths at MTBL branch premises

Dutch-Bangla Bank Limited (DBBL) and Mutual Trust Bank Limited (MTB) jointly signed an agreement for installation of co-branded ATM booths at the branch premises of Mutual Trust Bank Limited in a simple ceremony held at the MTBL head office on February 25. Under the agreement, DBBL will install ATM booths at the premises of MTB branches from which, customers of both the banks and other partner banks of DBBL will be able to withdraw money and get other banking services.

Kazi Md. Shafiqur Rahman, Managing Director of Mutual Trust Bank Limited and Md Yeasin Ali, Managing Director of Dutch-Bangla Bank Limited signed the agreement on behalf of their respective banks.

AHM Nazmul Quadir, Additional Managing Director, K. S. Tabrez, Deputy Managing Director (Operation), Abul Hashem Md. Shirin, Deputy Managing Director (Administration) of DBBL, Quamrul Islam Chowdhury, Deputy Managing Director, A. K. M. Shameem, Executive Vice President and Md. Nurul Islam, Executive Vice President of MTB and other senior executives of both the institutions were present at the signing ceremony.

SIMARCH FMO holds Asset and Liability Management Workshop

The Asset and Liability Management (ALM) workshop, organised by SIMARCH Asia, commenced on February 23, 2008.

The ALM workshop was co-sponsored by FMO, a Dutch Development Bank from the Netherlands.

The participating banks were AB Bank Limited, Bank Asia Limited, Dhaka Bank Limited, Dutch-Bangia Bank Limited, Mercantile Bank Limited and Southeast Bank Limited. The workshop was conducted by Ziegfried Vermaak, CEO of SIMARCH NV, based in Belgium and co-facilitated by Md. Akhtaruzzaman, Managing Director, SIMARCH ASIA.

Since 2003 SIMARCH has been conducting training programmes and workshops for banking personnel in Bangladesh. SIMARCH is currently working in more than 40 countries in Europe, Africa, Latin America and Asia.

GP launches new campaign

BUSINESS REPORT

Grameenphone (GP) has launched a new handset campaign for its new pre-paid subscribers, according to a press release.

Under the offer, new subscribers of Smile and Djuice connections can avail free bundled value added services (VAS) offers with Sony Ericsson J120i handset at a discounted rate.

The campaign will be valid until March 25, 2008 (subject to availability of stock), the release added.

Under the campaign, each new Smile M-M or Djuice connection comes bundled with a Sony Ericsson J120i handset and free VAS at Tk 3,750 only.

In addition, each Smile PSTN connection comes bundled with a Sony Ericsson J120i handset and free VAS for Tk 3,900 only.

The bundled connection includes three free welcome tunes to be downloaded from a gallery of 10 welcome tunes, free welcome tune monthly subscription for the month of March, free 100 voice SMS, free 30 minutes of news service to port 2000 and free 30 minutes of voice-based IVR service to port 2665.

New pre-paid subscribers can avail these offers from any of 82 Grameenphone centres across the country.

The offer is also available at the Grameenphone pavilion at the Chittagong International Trade Fair, the release said.

SIBL's land documents checking training ends

Certificate Awarding and concluding ceremony of the "Investment Management and Checking of Land Documents" was held at Social Investment Bank Limited Training Institute on February 20 last.

Abdul Awal Patwary, Chairman Board of Director, SIBL was present as the chief guest while Abu Sadek Md. Sohel, Deputy Managing Director of SIBL was present as special guest. The meeting was presided over by Akter Hossain, Principal of the bank.

While awarding certificates the chief guest and the special guest advised the participants to apply the knowledge and skill acquired in this training programme in their work situation and become a good banker. Akter Hossain, SVP & Principal SIBL Training Institute conducted the programme.

IIBL branch managers' conference 2008 held

BUSINESS REPORT

The annual conference of the branch managers 2008 of the Islami Insurance Bangladesh Limited was held recently at BIAM Foundation Auditorium, New Eskaton, Dhaka. The conference was inaugurated by the Vice Chairman of the company Alhaj M. Tajul Islam as the chief guest of the inaugural session and the second session of the conference was attended by the Chairman Alhaj Mohammad Sayeed Khokon as the chief guest.

Managing Director Md. Zainul Huda presided over the conference. Members of the Board of Directors including Tofazzal Hossain, Chairman Executive Committee, Alhaj Md. Ismail Nawab, Vice Chairman, Alhaj Md. Abdul Hannan, Director and Nur Nabi (representative of Begum Asma Nur, Director) were also present in the conference.

All branch managers from different parts of the country and departmental heads of the company's head office attended the conference. The branch managers who accomplished outstanding performance in the year 2007 were honoured with attractive awards and prizes.

Alhaj Mohammad Sayeed in his speech congratulated the branch managers for their excellent performance in the development or business during the year 2007. He advised them to work hard with devotion by maintaining high ethical standard and render best possible services to the clients.

Alhaj M. Tajul Islam advised the branch managers to uphold Islamic values in their words & deeds, and thus contribute their mite to establish an Islamic Insurance Company worthy of its name & sprit.

Among other members of the Board of Directors Tofazzal Hossain, Chairman- Executive Committee, AI-Haj Md. Ismail Nawab, Vice Chairman, AI-Haj Md. Abdul Hannan, Director and Nur Nabi spoke in the Conference dwelling upon various programmes of the Company and for their implementation in a befitting way.

In his speech Managing Director Md. Zainul Huda highlighted the business performance and expansion so far made by the Company and said that from its inception, the Company is making very good business and upholding the position continuously for the last eight years of its operation.

Managing Director congratulated the branch managers for their achievement and persuaded them to make persistent efforts to achieve the target of premium income. He also mentioned that the company has already earned good name in the Insurance market in respect of prompt settlement of claims.

Dano arranges 'Rhyme & Illustrate Contest 2008'

BUSINESS REPORT

Dano arranges 'Rhyme & Illustrate' Contest-2008 on the occasion of International Mother Language Day and is offering an attractive rhyme book with every 400gm regular and instant pack.

The children should collect a set of four individual books with different interesting Bengali rhymes. In each book there is a page for the participants where they supposed to write their own rhymes and to draw as they like and to send by April 10, 2008.

A panel of judges among prominent personalities of the country will select the winners from two individual groups. The winners will be awarded with attractive prizes like Computer, 21" Color TV, Digital Camera, Digital Dictionary, Bi-cycle and so on.

It may be mentioned that Dano is renowned since 46 years as a symbol of love and trust among the mothers of each and every family of Bangladesh. Dano contains all essentials nutrients for appropriate growth of children that leads them towards a prosperous future. Dano is always ahead in organizing innovative & attractive competitions for children to flourish their individualities & multi-talents. In this context, it is anticipated that this program will create a great hype & will bring a lot of encouragement among the children of Bangladesh and thus Dano will hold their specialty like before.

Manna Dey stays at Hotel de Crystal Garden during recent visit to Dhaka

BUSINESS REPORT

Manna Dey (Prabodh Chandra Dey, born May 1, 1919) (Padma Shri [1971]), (Padma Bhushan [2005]) Awards by the Government of India) arguably the greatest male playback singer in Hindi films of Bollywood and other vernacular Indian films, especially Bengali, recently visited Bangladesh and mesmerised Dhaka audiences and raised funds for Cyclone Sidr victims.

Manna Dey and his beloved wife Sulochana Dey along with Arundhati Holme-Chowdhury (well-known for her beautiful rendering of the excuisite song 'Phagoon ke daaklaam'), Satinath Mukhopadhyay (the outstanding versatile actor) and the seven member group which enthralled the audiences with their wonderful performance; stayed in Hotel de Crystal Garden in Gulshan-2 and were received by Sadique Ahsan, Chairman, Crystal Hotels & Resorts, President-Bangladesh Hotel & Guest Owners Association.

Management of 'Hotel de Crystal Garden' is honored and feels privileged to have served for the legendary singer and pray to almighty Allah for the recovery of Sidr victims.