A senior British banker today warned that the credit crunch is a long way from finished, in direct contradiction to recent comments by many of his counterparts in America.

Standard Chartered chairman Mervyn Davies said: "We will continue to see volatility in these markets. I do not believe the crisis is over."

The bank revealed it had lost a further $98 million (£49.7 million) and written down a further $156 million on asset-backed securities in the first quarter - still much less than most of its rivals.

Davies said: "There are many lessons to be learned: first, it is a cyclical industry; second, liquidity is key - just as important, if not more so, as credit evaluation; third, mispricing for risk can have fatal consequences; fourth, compensation arrangements need to be carefully controlled - if not controlled, compensation can negatively affect behaviour and risk management; and finally, we are part of a global industry where good and bad news, capital and, indeed, people cross borders at lightning speed.

"Who would have thought that a global credit crunch, which originated in the subprime mortgage crisis in the US, could spread so quickly and lead to the collapse of a UK bank?"

Davies told today's annual general meeting that Standard Chartered remained "a well-capitalised bank, a highly liquid bank and a profitable bank". He added that it had made a "very good start to the year".