Standard Chartered posted a better-than-expected 57 per cent jump in first-half pre-tax profits as it followed fellow banking giants in releasing a wave of capital set aside in anticipation of a surge in Covid-related customer defaults.

Pre-tax profit for Standard Chartered, which has a strong presence in Asia, Africa and the Middle East, rose to $2.55bn in the first six months of this year, up sharply from $1.63bn in the same period last year.

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That figure saw the bank slightly beat the average $2.23 billion estimate of the analysts that Standard Chartered had compiled.

The bank announced a three cents per share interim payout on dividend payments and kicked off a $250m share buyback.

The London-based bank’s loan-loss provisions fell sharply by $841m over the last year as the stronger than expected UK economic rebound helped avert a mass of household and business defaults.

Standard Chartered released £51m in loan-loss provisions over the last six months.

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Rival Lloyds, Barclays and HSBC have also released enormous amounts of capital ring fenced in order to offset an expected increase in non-performing loans driven by the Covid-induced reduction in economic activity putting households and businesses under severe financial strain.

Chief Executive Bill Winters said: “We believe that we will soon be back on the same performance trajectory that we were on before the pandemic set us back.”

Income dipped five per cent, partly attributed to the bank’s net-interest margin being broadly flat in the second quarter of this year compared to the same period a year ago at 1.22 per cent.

Global banks are struggling to generate profits from traditional business lines amid the record-low interest rate environment globally.

However, Standard Chartered saw its profit rebound less than its peers and British rivals HSBC and Barclays as income in its cash core management and trading businesses fell.

Profits were held back by an eight per cent increase in costs, largely in line with other banks driven by wage increases and the resumption of bonuses for senior staff.

In a move aimed to tackle global societal issues, the bank set out three areas in which it will seek to help others. Those included: climate change, lifting women and small businesses and “giving more people the chance to participate in the world economy”.

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