Mar 30, 2008 (LBO) – Standard Chartered Bank which won a deal to raise 150 million dollars for the government earlier this month, is well positioned to boost fee based services, a top official said. A top player in foreign exchange markets and hedging products in the island, Standard Chartered Sri Lanka’s after tax profit grew 38 percent to nearly two billion rupees in 2007.
Out of its three billion rupee pre-tax profits, two thirds was generated from fee-based services. The bank’s foreign exchange operations alone had brought in a billion rupees.
Unlike fund based lending, most fee-based services do not require balance sheet expansion, though risks have been carefully management when interacting with financial markets.
“More and more the sophistication of the products that we tend to offer means that a fee is charged, it’s not just a beneficial amount from the interest,” chief executive Clive Haswel told ETV’s Money Report show.
“So fee income is a particularly important part from the banks point of view because it means that we structure a deal or we arrange some financing for witch a service is provided and a fee is returned,”
The bank has been active in providing hedgi