HONG KONG/LONDON, May 2 (Reuters) - Standard Chartered

PLC ( SCBFF ) beat forecasts on Thursday with a 5.5% rise in its

first-quarter pretax profit, as the income boost from higher

interest rates and a robust performance from its markets trading

business offset a surge in credit losses.

The bank, which makes the bulk of its revenue and profits in

Asia, saw its credit impairments worsen in 2024, with a $165

million writedown in the first three months, compared to $20

million a year earlier.

The bulk of the credit impairment was accounted for by the

bank's wealth and retail banking division. The British bank has,

however, made provisions worth $1.2 billion in total in relation

to the China commercial real estate sector, it said.

StanChart had taken a total of $850 million in writedowns in

the previous quarters on its stake in China's Bohai Bank

, which like its peers suffered from a slowing Chinese

economy and the deepening crisis in the property sector.

Chinese authorities have been ramping up measures over the

last few months to prop up the troubled sector, but analysts say

many of the policies are piecemeal in nature or have only

limited, short-term impact.

StanChart's Hong Kong-listed shares jumped 4% on Thursday

after the results to their highest level in nearly seven months,

while the main local index was trading 2.4% higher.

While StanChart's investment banking unit profit rose 13% in

the quarter, the overall performance showed the challenge Chief

Executive Bill Winters faces in boosting a share price which he

himself bemoaned as underwhelming when the bank last reported

results.

Despite the challenges, the bank said it was maintaining the

performance guidance targets it set out earlier this year.

StanChart's pretax profit in the quarter was $1.91 billion.

That compared with $1.81 billion a year earlier and the $1.39

billion average of 13 analyst estimates compiled by the bank.

"We delivered a strong set of results in the first quarter

of 2024, with double-digit growth in income and positive

operational leverage," Winters said in the earnings statement.

"We remain confident in the delivery of our financial

targets and are maintaining our full year 2024 guidance."

The lender said its profit from joint ventures in the first

quarter slipped to $6 million from $18 million as profit at

Bohai Bank fell.

StanChart also said it booked a $100 million provision for

expected compensation fees for customers in South Korea who

bought certain equity linked securities which ended up causing

them a loss.

Regulators in the country have advised that banks in the

country who sold such products should reimburse customers.

(Reporting by Selena Li and Lawrence White; Writing by Sumeet

Chatterjee; Editing by Muralikumar Anantharaman)