StanChart sees $330 mn Iran fine | business | Hindustan Times
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StanChart sees $330 mn Iran fine

business Updated: Dec 06, 2012 21:59 IST

Standard Chartered expects to pay $330 million to settle a case with US regulators for breaking sanctions on Iran, the Asian-focused bank said on Thursday, a second such penalty which could almost wipe out its profit growth this year.

Standard Chartered already paid $340 million to New York's Department of Financial Serv-ices (DFS) in the third quarter, and the London-based bank said the settlement with federal and other state regulators was expected "very shortly".

The original DFS fine will cut pretax profit growth this year to around 5%, from an underlying profit rise of more than 10%, the bank said in a trading update- so the additional payment could leave profits near flat on the year.

The DFS, New York's banking regulator, said Standard Chartered had hidden financial transactions with Iran.

The bank agreed to pay the civil penalty after its stock dropped due to the allegations and a threat to revoke its license to do business in New York.

The United States has led the drive for sanctions, hoping to halt an Iranian nuclear program which Washington suspects is aimed at producing weapons although Tehran says it is peaceful.

Even slim earnings growth would mean a 10th straight year of record profits, as StanChart has ridden on Asia's rise through much of the last decade, allowing it to continue hiring and increasing earnings when much of the industry is shrinking.

Finance director Richard Meddings estimated Standard Chartered could have to pay $320-330 million next year under a British bank levy.