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StanChart worried about regulatory costs despite record profit

StanChart worried about regulatory costs despite record profit
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Standard Chartered has posted a record profit, but complained new banking regulations and a UK tax on the sector are costing it dear – in excess of $500 million (383 million euros) a year.

The London-listed bank, which has benefited from Asia’s growth, saw its 2012 pre-tax profit rise one percent to $6.9 billion (5.3 billion euros).

It would have been more but for the big fine it had to pay for breaking US sanctions on Iran.

A European Union proposal to cap bankers’ bonuses at double their salary was also a worry, the bank said.

“We are concerned about it because we are a global bank and 97 percent of our staff are outside the EU and we’re concerned about our ability to be competitive in attracting and retaining talent,” Chief Executive Peter Sands said.

Asked if it could prompt the bank to leave London, he said it was “too early to draw conclusions on what action we would take as we don’t know what we are dealing with.”

Standard Chartered said it had cut its 2012 bonus pool by seven percent from a year before to $1.43 billion (1.09 billion euros), after it was fined $667 million (512 million euros) by US regulators for breaching sanctions related to Iran and three other countries.

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