STANDARD CHARTERED BOOSTED BAD-DEBT PROVISIONS

  Standard Chartered Plc &lt;STCH.L>, faced
  with a recession in the key Singapore and Malaysian markets and
  an ongoing depression in the shipping industry, boosted its
  bad-debt provisions in 1986, chairman Lord Barber said.
      Barber said in a statement on the bank's 1986 results that
  bad and doubtful debt provisions, both general and specific,
  stood at 545.6 mln stg against 416.6 mln at end-1985.
      Bank figures showed the increase was almost exclusively in
  the specific bad risk provision, which qualifies for U.K. Tax
  breaks. New specific provisions rose by 111.5 mln stg while
  71.2 mln stg were reallocated from the general risk provision.
      In all, a 184.2 mln stg charge was made against profits for
  1986, compared with a 100.7 mln stg charge in 1985. Total
  pre-tax profits fell to 254 mln after 268 mln in 1985.
      "The continuing serious recessionary conditions in Singapore
  and Malaysia and the depressed condition of the shipping
  industry made it necessary to provide heavily against bad and
  doubtful debs arising from loans in the Asia Pacific region, on
  top of the normal level of provisioning," Barber said.
      He said, "the decision was also taken to build up loan loss
  reeserves by making a sizeable increase in the charges for
  general provisions for commercial and cross border risks."
      Barber said due to bad-debt provisioning, the Asia Pacific
  region made "a negligible contribution to pre-tax profits."
      He said the profits contribution from the U.K. Businesses
  was "well maintained, although the reported result was affected
  by cross border debt provisioning," while Californian subsidiary
  Union Bank "showed continued growth."
      "Tropical Africa, Middle East and South Asia all turned in
  excellent performances and the revival in Europe continued," he
  said.
      Barber said the group, which succesfully fought off a
  takeover bid by Lloyds Bank &lt;LLOY.L> last year, strengthened
  its capital resources during that year to just over three
  billion stg, while total assets increased to 32.2 billion.
      Capital adequacy ratios remained strong, with the primary
  capital ratio standing at 7.5 pct at end 1986, he said.
  

