Liverpool FC sponsor Standard Chartered has revealed profits dropped by 12% in the first quarter of 2020, as the banking services giant battled the effects of the coronavirus outbreak.
In quarterly results released last night, the London-based firm announced several hits caused by the Covid-19 outbreak, including expected credit losses soaring from $78m to $956m from the same period in 2019.
That’s despite operating income growing 13% and other income rising by 31% for Standard Chartered, which this year marks a decade of alliance with Liverpool.
There are signs of hope, however, and the firm, which employs over 90,000 people worldwide, said “encouraging early signs” of recovery in China means it is hopeful the global economy can “get back on its feet rapidly”.
Bill Winters, group chief executive, said:“The unique characteristics of the Standard Chartered franchise are coming through strongly as the impact of Covid-19 evolves.
“Our teams around the network are responding very well, staying close to our clients. While pressure on credit quality has increased recently, we delivered good underlying income growth of six per cent in the first quarter and maintained strong cost discipline.
“We try to show every day that we are ‘Here for good’, as individuals and collectively, and I am proud of the way my 91,000 colleagues around the world are facing this challenge.”
Looking ahead, the statement said it is “not possible to reliably quantify” the impact of Covid-19 on the firm’s future financial performance but that “the consequences for the global economy are likely to lead to further impairments and could affect income, risk-weighted assets and possibly costs”.
It added: “The Group is monitoring the situation carefully and is committed to deploying its strong capital and liquidity to support its clients and the communities it operates in through the crisis.”
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Mr Winters said: “Among the many support initiatives being rolled out across our 59 markets, we have launched a $50m global fund with donations from colleagues and the bank to provide assistance to those affected by Covid-19 and related economic impacts and have committed up to $1 billion of financing, offered at cost, for companies that are providing goods and services to help in the fight against the pandemic.
“That’s in addition to the help we are providing all our clients as they face ongoing challenges. We won’t stop there and will continue to think of practical and impactful ways to make a difference.
“While sentiment globally is extremely depressed now, the uniqueness of this franchise and the work we have done since 2015 to secure its foundations gives me confidence that we can come through the crisis with strength.”
Earlier this year Standard Chartered released a video celebrating its decade of partnership with Liverpool FC.