Standard Chartered, the Asia focused banking group, promised no let-up in its ambitious growth drive — including more acquisitions — as profits raced ahead in the first half.

Peter Sands, the chief executive, batted away speculation that Standard Chartered was lining up a bid for Nebank, owned by Old Mutual in South Africa.

He also declined to be drawn on speculation that it might deepen its relationship with Temasek, the Singapore Government's investment fund that last month snapped up £2.4 billion shares in Barclays.

It was reported today that Temasek had increased its state in Standard Chartered to more than 14 per cent.

But, as rapid growth in new markets in China helped offset poor returns for Standard Chartered in its more established businesses in Korea, Mr Sands said that growth remained at the top of his agenda.

"The core of our growth is organic but at the same time we are on the constant lookout for acquisitions. We'll look at much more than we will do," Mr Sands said.

"We don't constrain our views in terms of acquisitions. South Africa is a country where we would like to grow our business. Our primary inclination is to grow organically but we wouldn't rule out acquisitions," he said.

His comments came as pre-tax profits surged 30 per cent to a record $1.98 billion for the six months to the end of June. Operating profits pushed 28 per cent higher, breaching the $5 billion level for the first time.

Standard Chartered said that its two powerful engines of growth, consumer and wholesale banking, each contributed more than $570 million of incremental revenues in the first half.

Standard, associated with the emerging markets but retaining its London listing, launched private banking in six new markets during the first half, as well as incorporating its business in China, where it expects to be employing 3,500 staff by the end of the year.

It began to integrate acquisitions made last year in Pakistan and Taiwan, and also launched its Islamic banking brand, Saadiq.

Costs rose more rapidly than income over the first half, but Mr Sands said that he expected things to balance out during the second half and Standard Chartered should end the year flat.

The bank's set-back came in Korea, where revenues fell 7 per cent to $190 million but costs grow 41 per cent to $116 million.

Mr Sands admitted that Korea "didn't have a great first half", although he maintained that if investors looked through the "noise" of the results there they would find a strong business.

"The underlying challenge is that there have been constraints on the growth of the mortgage market, which has constrained growth and margins. However, it's a great business ... a large scale platform that has grown strongly."

Mr Sands added that: "I don't expect the mortgage market [in Korea] to suddenly return to growth this year."

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive