Standard Chartered PLC (LSE:STAN) posted a better-than-expected jump in third-quarter profits even though bad debt provisions more than doubled to US$227mln.
The Asia-focused bank also raised its income growth forecast for this year to around 13% from 10% despite what it said are challenging conditions in the property market in China and Hong Kong.
Standard Chartered has a US$3.5bn Chinese property loan book, a sector that has been plagued by multiple problems since the economy in the country started to slow two years ago.
Some US$130mln of the bad debts were for China.
Bill Winters, chief executive, played down the concerns and said: “We remain confident in the delivery of our 2024 financial targets."
Pre-tax profits rose 32% to US$1.42bn and the bank said the benefits of its cost-cutting measures were coming through earlier than expected.
Around US$173mln of savings have been delivered so far and the bank said it is on track to hit its 2022 cost savings target of US$200mln.
Shares fell 4.6% to 528p.