Standard Chartered Breaks Profits Record for 10th Year in a Row

The contrasting fortunes of two major banks were demonstrated on Wednesday when London-based Standard Chartered reported its 10th successive year of record first-half profits while Société Générale of France suffered a more than 40% drop in its profitability.

While Standard Chartered, which reported a 9% rise in profits to $4bn, made clear that it was not involved in the Libor rate-rigging scandal, SocGen admitted it had launched an internal inquiry into whether of any of its traders had manipulated the key rate. SocGen stressed "to date, we have not received any notice of wrong doing" from regulators.

Peter Sands, Chief Executive of Standard Chartered, said the bank was stepping up investment at time when rivals were struggling. 'It may seem boring in contrast to what is going on elsewhere, but we see some virtue in being boring', said Sands.

While the bank is focused on emerging markets, it reported a 26% rise in income from the UK and American markets. 'We are helping German companies sell cars in China, Indian companies make acquisitions in the UK and US or French companies raise capital from Asian investors', Sands said.

He shrugged off speculation linking him to the job of governor of the Bank of England and insisted an ongoing discussion with the US authorities into sanctions breaches was not of the same scale as the problems facing rival HSBC which has been lambasted by the US Senate for helping drug barons and terrorists move money around the financial system.

Richard Meddings, the finance director touted as a potential candidate to join Barclays in the wake of the Libor fine, said he was 'very happy' at Standard Chartered.

SocGen's net profit fell 42% to $530m in the second quarter when its investment banking arm dragged down profits and writedowns on its Russian and US businesses also knocked a dent in profits.

This article was written by Jill Treanor, City editor, for guardian.co.uk on Wednesday 1st August 2012 18.16 Europe/London