Standard Chartered records slowest revenue growth in 10 years

Guess where the 5% drag on Group revenues came from?

According to Barclays, the main source of disappointment in the Q1 IMS was that revenue growth was only marginal and that tight cost control and lower Wholesale impairments weren’t enough to prevent a YoY earnings decline.

Here's more from Barclays:

This looks like the weakest revenue momentum that we have seen since 2002 which is disappointing for a bank that is priced for its growth potential. Management partly attribute this to tough prior year comparators, particularly in Own Account income mainly driven by weaker ALM revenues, next to no Principal Finance realisations and lower Financial Markets income.

We estimate that this led to a more than 40% YoY fall in Own Account income which translates into a 5% drag on Group revenues. While some of this may correct as the year progresses, ALM in particular is likely to remain subdued and client income growth has also slowed, with margins under pressure and less Financial Markets activity.

Guiding to 10% underlying PBT growth in FY13: Despite the weaker quarter, management remains comfortable with full year consensus profit before tax of $8.2bn. This suggests 10% underlying YoY growth after stripping out one-offs like the $0.7bn settlement with the US authorities.