Standard Chartered Had ‘Strong’ First Two Months

March 17 (Bloomberg) -- Standard Chartered Plc, the U.K.’s second-largest bank by market value, had a “strong” first two months of the year, said Chief Executive Officer Peter Sands.

Sands, speaking in Hong Kong today, also said he has no plans to cut jobs and that the bank will focus on “organic” growth, though would consider acquisitions in Asia and the Middle East. He said he’s “comfortable” with Standard Chartered’s capital levels.

London-based Standard Chartered joins Citigroup Inc. and Bank of America Corp. in seeking to reassure investors that earnings are recovering from the worst financial meltdown in decades. The bank’s shares have lost 2.7 percent in London this year, compared with a 33 percent plunge for rival HSBC Holdings Plc, which is raising $17.6 billion in a rights offer.

Standard Chartered shares slipped 0.6 percent in Hong Kong trading at 11:45 a.m., after falling as much as 2.5 percent before Sands’s remarks.

UBS AG cut its rating on Standard Chartered to “neutral” from “buy” on March 11, reversing a March 4 upgrade, following the stock’s 38 percent gain over six trading sessions after second-half profit beat analysts’ estimates. The bank reported an 8.3 percent increase in net income on March 3.

The bank’s results were mainly lifted by earnings from corporate lending, which rose 18 percent to HK$1.35 billion, compensating for a decline in consumer banking profit in Hong Kong and the Asia-Pacific region.

‘Comfortable’

Standard Chartered raised 1.8 billion pounds ($2.8 billion) in a December rights offer, fueling speculation that HSBC would follow suit as economies around the world weaken. Both banks have avoided following RBS and Lloyds Banking Group Plc in seeking government aid.

“I would never rule out more capital but we’re very comfortable with our capital position,” Sands said today.

Standard Chartered plans to open its first locally incorporated bank in Vietnam this year, Ashok Sud, its Hanoi- based chief executive officer for Vietnam, Laos and Cambodia, said this month. The lender holds 15 percent of Asia Commercial Bank, Vietnam’s biggest listed company by market value.