Standard Chartered on August 3 returned to profit in the first half as bad loans fell, but said weak economic conditions will delay its attainment of a key performance target.

The Asia-focused bank posted a $394 million net profit in the first half, less than in the first half of 2015, but following a $3.8 billion net loss in the second half of 2015. Bad loans dropped to $1.1 billion, from $1.65 billion in first-half 2015 and $2.36 billion in the second half.