StanChart raises dividends, cuts back on top bonuses
Lender has 10th year of record earnings but concerns linger about looming regulatory costs
Standard Chartered lifted its 2012 dividend payout 11 per cent but bonuses paid to top executives slipped amid higher regulatory costs.
Finance director Richard Meddings said he expected the bank would have to pay more than US$500 million this year in one-off regulatory costs. The bank said such costs remained a concern, with the amount imposed expected to be bigger owing to a growing balance sheet.
Chief executive Peter Sands said the bank shrank its bonus pool to US$1.43 billion last year, down from US$1.54 billion for 2011. Bonuses for Sands and Meddings fell 10 per cent to US$3.15 million and US$2.16 million respectively.
The bank will pay a final dividend of 56.77 US cents a share, 11 per cent more than in 2011.
Standard Chartered posted a 10th year of record earnings. Pre-tax profit rose 1 per cent to US$6.87 billion for last year, beating the mean estimate of US$6.84 billion. Excluding US$667 million in settlements with US regulatory authorities over money-laundering investigations, pre-tax profit rose 12 per cent. Net profit was up 1 per cent to US$4.79 billion.
Sands said the group started well this year, with consumer banking and wholesale banking ahead of the same time last year.
