Standard Chartered fell into a net loss of US$35 million in the three months to September.

That contrasted with profit after tax of US$964 million in the same part of last year, it said in a results statement.

Income rose 6% to US$4.4 billion on rising global interest rates.

However, the performance was skewed by nearly US$900 million in charges linked to Standard Chartered’s exposure in China.

That included a US$700 million impairment on its stake in China Bohai Bank, which it said faces “subdued” earnings and a “challenging” macroeconomic outlook.

The news sent Standard Chartered shares diving 10% to 642 pence, topping the fallers board on London’s sliding stock market.

“China remains both a blessing and a curse for Standard, with the country’s faltering economic recovery weighing heavily on these results,” said Richard Hunter, head of markets at Interactive Investor.

“These provisions have driven a bus through earnings,” he added.