The strength of Standard Chartered's operations in Asia have resulted in a 27 per cent surge in annual profit to a record $4.04 billion (£2.05 billion). The profit rise came despite a bigger writedown on high-risk assets.

The bank, which earns three quarters of its profit in Asia, said that it expected another strong performance for 2008, particularly in wholesale banking.

The profit, up from $3.18 billion in 2006, compared with consensus analysts’ forecasts of $3.92 billion.

Its shares rose 6.3 per cent, or 100p, to 1680p in early trading.

The results were bolstered by a strong performance from operations in India and China. Profit in Indian wholesale banking increased by 91 per cent to $626 million on an 82 per cent increase in income. The bank said that it had more than 100 clients in India generating more than $1 million in annual income. The Chinese business reported a 73 per cent increase in income to $498 million.

The bank said that it had suffered a $300 million writedown on its Whistlejacket structured investment vechicle and its asset securitisation unit that was related to last year's turmoil in global markets.

Last week, Standard Chartered gave up trying to supply liquidity to Whistlejacket, which entered receivership on February 11. It had previously reported a $116 million hit associated with the business.

Overall, operating income was up 27 per cent to $11.1 billion from $8.6 billion in 2006.

Mervyn Davies, the chairman, said: “Standard Chartered has shown how its position in the world’s growth markets and the strength of its balance sheet can deliver record results during turbulent times. We are not complacent about the future but are confident that we will deliver another strong performance in 2008.”

Earnings per share climbed 15.8 per cent to 197.6 cents and the board recommended an annual dividend of 79.35 cents per share.

Last month, Temasek, Singapore’s state-linked investment company, raised its stake in Standard Chartered to more than 19 per cent.

The strength of Standard Chartered's operations in Asia have resulted in a 27 per cent surge in annual profit to a record $4.04 billion (£2.05 billion). The profit rise came despite a bigger writedown on high-risk assets.

The bank, which earns three quarters of its profit in Asia, said that it expected another strong performance for 2008, particularly in wholesale banking.

The profit, up from $3.18 billion in 2006, compared with consensus analysts’ forecasts of $3.92 billion.

Its shares rose 6.3 per cent, or 100p, to 1680p in early trading.

The results were bolstered by a strong performance from operations in India and China. Profit in Indian wholesale banking increased by 91 per cent to $626 million on an 82 per cent increase in income. The bank said that it had more than 100 clients in India generating more than $1 million in annual income. The Chinese business reported a 73 per cent increase in income to $498 million.

The bank said that it had suffered a $300 million writedown on its Whistlejacket structured investment vechicle and its asset securitisation unit that was related to last year's turmoil in global markets.

Last week, Standard Chartered gave up trying to supply liquidity to Whistlejacket, which entered receivership on February 11. It had previously reported a $116 million hit associated with the business.

Overall, operating income was up 27 per cent to $11.1 billion from $8.6 billion in 2006.

Mervyn Davies, the chairman, said: “Standard Chartered has shown how its position in the world’s growth markets and the strength of its balance sheet can deliver record results during turbulent times. We are not complacent about the future but are confident that we will deliver another strong performance in 2008.”

Earnings per share climbed 15.8 per cent to 197.6 cents and the board recommended an annual dividend of 79.35 cents per share.

Last month, Temasek, Singapore’s state-linked investment company, raised its stake in Standard Chartered to more than 19 per cent.

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