(Adds executive, analyst comment.)

By Vladimir Guevarra

Of DOW JONES NEWSWIRES

LONDON -(Dow Jones)- Standard Chartered PLC (LSE:STAN) (STAN.LN) said Thursday that its trading performance for the first half of the year has "been very strong" but expects some economic uncertainty going forward.

In a trading update, the bank said it "had a very strong performance, building on the very good start to the year" and said it remains well-capitalized and highly liquid, with a loan-to-deposit ratio of around 90%.

However, it also said "the economic horizon is increasingly uncertain and our approach to risk management remains highly disciplined."

Standard Chartered, which generates over 90% of its profit outside the U.K. and largely in emerging markets, said trading in its main operating markets has benefited from robust economic growth, good local currency liquidity and a sound credit environment.

"Standard Chartered has continued to deliver very strong performance, primarily driven by excellent results from wholesale banking. We have yet to see a material slowdown in our markets," Chief Executive Peter Sands said.

"However, given the extraordinary turbulence in financial markets, and increasing inflationary pressures now arising in our geographies, we remain disciplined in our management of risks and costs," Sands said.

At 1158 GMT, Standard Chartered's shares were down 5.7% at 1,479 pence, compared with the FTSE 350 Banks index which was down 3.9%.

Lehman Brothers' initial reaction to the trading update was positive. " Although there may be concerns over the continued mix of profits growth, including the capital and proprietary nature of the wholesale banking growth, we would still regard the group's prospects as superior to banks in Anglo Saxon markets," Lehman said.

"We remain positive towards Standard Chartered and regard the recent correction in the shares as a buying opportunity," it said.

Pali International analyst Bruce Packard said Standard Chartered's trading statement "looks OK."

However, he questioned "the sustainability of what looks like very good results in wholesale banking given the rising interest rate environment in India."

Analysts have cautioned that rising inflation and interest rates could affect the ability of customers to pay loans.