StanChart discounts capital concerns; looks at growth

29 October 2008

Asia focused UK banking major Standard Charterd Plc, which reported strong third quarter results, said it will not participate in the UK government's £500 billion bailout and asked the Treasury instead to underwrite a share issue.

StanChart, which was involved in talks that led to the government's rescue package, said it did not require fresh funds, but said StanChart would continue to raise capital if necessary to support the growth of its business and would look at acquisitions.

StanChart, had a fortnight ago, announced that it meets the capital requirements under the UK banking sector regulations and therefore does not intend to raise fresh capital.

StanChart, which boasts of an 85 per cent loan-to-deposit ratio, also claims lower exposure to the troubled interbank lending market than most rivals.

StanChart said it continued to progress in the third quarter despite slowing economic growth in the Asian region and was confident of its capital strength.

''It is clear that Asian economic growth is moderating but, in general, the economies remain resilient and their economic growth rates remain well above the rates of growth for markets in the West," the bank said in a statement.