Standard Chartered Faces Further Iran Fine
London-listed Standard Chartered expects to pay $330m (£205m) to settle a case with US Federal regulators who have accused the bank of failing to comply with sanctions against Iran.
The settlement will be on top of the $340m (£217m) it paid to New York's Department of Financial Services (DFS) in the third quarter, which pushed its pre-tax profit growth in 2012 to a mid-single-digit percentage from more than 10%, it said in a trading statement.
While StanChart has admitted that some transactions it handled failed to comply with the sanctions, it has strongly disputed US suggestions that the sums involved amounted to $250bn (£155bn) over more than a decade.
The DFS had accused StanChart of being a 'rogue institution' which covered up thousands of illegal money transfers for the Iranian government.
The bank said it expected talks with Federal officials to conclude shortly but it could not rule out the prospect of further penalties.
In its trading update, StanChart released few specific numbers but said it was looking to India and the Middle East for asset quality and it expected to "deliver another strong set of full year results."
Its focus on Asia has meant it has largely outperformed many of its rivals in recent years and continued to grow at a time when banks in Europe and the US have struggled to shrug off the effects of the financial crisis.
Despite its regulatory woes, the bank is one of the few still hiring in the industry, saying in August it intended to add at least 1,500 more staff in the second half of this year.
By contrast, most rivals have been cutting, with Citi saying on Wednesday it was cutting 11,000 jobs.