Standard Chartered profit up 8 percent; will settle with NY regulators

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Standard Chartered PLC reported higher profit in the first half, as it also agreed to pay a financial penalty in relation to its alleged failure to prevent money laundering.

The British lender said its first-half profit rose 8 percent, but was weighed down by weakness in its financial-markets operations and their alleged lending fraud at a Chinese port.

Net profit stood at $2.3bn, an increase from $2.13bn from the year-ago period, when the bank took a charge worth $1bn from the drop in value of its South Korea-based business. The company was also hit by increased competition, a slowing economy and a government measure that allowed household borrowers to write off a large part of bank debt.

Standard Chartered said it is holding discussions with a New York banking regulator over fresh allegations that its system failed to alert regulators of suspicious transactions. The talks are expected to result to the bank paying a monetary penalty.

The investigation is linked to a 2007 computer system the UK bank put in place to check payments for suspicious activity.

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