Standard Chartered PLC (STAN.LN) said Wednesday that its net profit for the first half of the year rose 11% from a year earlier as bad-debt charges fell sharply.

"The challenging credit environment seen in early 2009 has continued to ease, resulting in lower delinquency trends since the second half of 2009 and consequent lower provisions, both at a specific and portfolio level," the U.K.-based bank said.

U.K. peer HSBC Holdings PLC (HBC) also reported a sharp drop in loan impairment charges for the period, signaling that the worst in credit losses could be over for the industry.

Standard Chartered said net profit attributable to parent-company shareholders for the six months ended June 30 was $2.15 billion, up from $1.93 billion a year earlier, when it booked a $248 million gain from a notes buyback, the Asia-focused bank said in a statement.

Pretax profit was $3.12 billion, up from $2.84 billion in 2009, and in line with analysts' expectations.

Loan impairment losses across the bank fell 60% to $437 million from $1.09 billion.

"We continued our strong performance in the first half of 2010 and both of our businesses have had an encouraging start to the second half," Chairman John Peace said.

The bank said consumer banking income grew by 8% in the period, while wholesale banking income rose by 18%. Own-account income, however, "fell from the very strong levels seen in the first half of 2009."

Total operating income fell slightly in the period to $7.92 billion, from $7.96 billion, it added.

Standard Chartered-which derives more than 90% of its income from emerging markets in Asia, Africa and the Middle East-has outperformed its U.K. peers due to its large exposure to Asia, as emerging markets have rebounded at a faster rate following the global financial crisis.

All European banks, however, have had their short-term funding abilities hit by sovereign-debt woes in the region. Standard Chartered said it remains liquid and well-capitalized.

-By Patricia Kowsmann, Dow Jones Newswires. Tel +44(0)207-842-9295, patricia.kowsmann@dowjones.com

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