Banking and financial services. Standard Chartered employs 38,000 people in 950 locations in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. Standard Chartered is one of the worlds most international banks, with employees representing 80 nationalities. It serves both Consumer and Wholesale Banking customers. Consumer Banking provides credit cards, personal loans, mortgages, deposit taking and wealth management services to individuals and small to medium sized enterprises. Wholesale Banking provides corporate and institutional clients with services in trade finance, cash management, lending, securities services, foreign exchange, debt capital markets and corporate finance.

Red = 25 day moving average. Green = 200 day moving average.

The Business - 19/10/2006

Bid fever over Standard Chartered - Helen Dunne & Ben Marlow


Standard Chartered Bank, which in the past has rejected approaches from virtually every British high street bank, is once again at the centre of takeover rumours.

The London-based bank, with operations in 56 countries and employees of 89 nationalities, is viewed as an ideal way for a rival to gain exposure to some of the worlds fastest growing regions.

Led by Welshman Mervyn Davies, 53, Standard Chartered has just announced the 650m acquisition of Hsinchu International, a Taiwanese retail bank, becoming the first British bank to buy into the country. Over the past 18 months, Standard Chartered has also made acquisitions or bought stakes in operations in Pakistan, China, Bangladesh, Vietnam and Korea.

Its diverse portfolio has already caught the attention of two hedge funds. A Dubai investment fund bought a 2.7% stake while Temasek, an arm of the Singaporean government, acquired an 11.5% holding.

Analysts believe Standard Chartereds investors gain an exposure to fast growing regions, with the security of a UK corporate governance structure.

The Observer - Sunday October 22, 2006

Dubai set to increase stake in Standard Chartered - Richard Wachman


Dubai is considering raising its stake in Standard Chartered to as high as 20 per cent at a cost of $7bn, according to sources in the oil-rich state.

The country's state-owned investment company, Istithmar, recently splashed out $1bn for a 2.7 per cent holding in Standard, making it the biggest shareholder behind Temasek, an arm of the Singapore government, which has nearly 12 per cent.

The prospect of Dubai increasing its holding in a bank long rumoured to be a takeover target is bound to increase speculation about an eventual stand-off between the Singaporeans and Dubai. Last year the two fought a battle for P&O, the UK ports group, which Dubai won.

Significantly, perhaps, the man behind Istithmar is the same individual who saw off Temasek at P&O. His name is Sultan Ahmed Bin Sulayem, and observers say he has considerable resources at his disposal for foreign investments.

A London-based investment banker said: 'What people expect is that Istithmar will act slowly, increasing its stake to 5 per cent, probably quite soon, and then to a level that is similar to Temasek's. But it must be a strong possibility that it could go much higher to block off the Singaporeans, and thereby lay the foundations for a future bid battle.'

A spokesman for Standard said: 'We don't comment on market speculation. But we have a clear strategy and strong momentum. We view any interest shown by investors as an endorsement of our growth strategy and performance.'

Mervyn Davies, the chief executive of Standard, has long maintained that the bank is happy pursuing an independent path and is not courting bidders.

Standard has attracted interest in the past from American rivals, such as JP Morgan, Citigroup and Bank of America. Royal Bank of Scotland under Fred Goodwin has also run a slide rule over Standard, which has businesses in the Middle East and Africa as well.

The bank is viewed in the City as an ideal way for shareholders to gain exposure to some of the globe's fastest-growing markets, particularly in Asia. Standard has been investing heavily in the region in the past 18 months, firing off bids for banks in Taiwan, Pakistan and South Korea.

Davies has revived the fortunes of the bank following a period of management infighting, which led to the loss of two chief executives before his arrival in 2003.

Telegraph.co.uk - 23/10/2006

Corus deal to net Standard Life 100m - By John Burman


Standard Life, the Corus shareholder which has complained that Tata Steel's 4.3bn agreed offer for the Anglo-Dutch steel firm is too low, is set to make a profit of more than 100m from its 7.9pc holding.

Fund managers at Standard Life are believed to have bought the stake in Corus at an average price of about 300p a share.

Tata Steel's 455p-a-share offer for Corus would represent a 50pc return for Standard Life, which is nevertheless unhappy at the price agreed. On Friday, Standard Life described the offer from Tata as "lower than we would have expected the board of Corus to agree to" on the basis that merging the two businesses would lead to substantial savings.

Good recovery this week.

NICE MOVE

Results due tomorrow.

EARNINGS PREVIEW: Standard Chartered 1st Half Pretax Profit Seen -5.4%


Standard Chartered (STAN.LN): 1H Earnings
Due: August 4 at 0830 GMT
DJ Survey of 6 Analysts

Avg Pretax Profit: $2.45B, -5.4% ($2.59B in 1H 2008)
Avg Net Interest Income: $3.76B, +1.3% ($3.71B in 1H 2008)
Note: Standard Chartered is expected to report a good half in wholesale banking but with higher loan losses and weak margins in consumer lending. Analysts are focused on the outlook for consumer business and news of any new business ambitions or acquisitions. (MCP)

Interims part 1

Interims part 2

Interims part 3.

Interims part4.

Not keen on most banks lately but watch this one occasionally.

Up about 30 pts on the statement then a spike down just before 9 am. by a similar amount.

My question is, is this usual activity STAN watchers please?

Number of shares, debentures or financial instruments relating to shares disposed

Gareth Bullock - 40,000 (0.002%)

Richard Goulding - 70,000 (0.0035%)

Richard Meddings - 50,000 (0.0025%)

Peter Sands - 60,000 (0.003%)

Been thinking about a dip in here.. glad I didn't after seeing this tonight.

Final Results.

Highlights

Reported results

Operating income up 9 per cent to $15,184 million (2008: $13,968 million)

Profit before taxation up 13 per cent to $5,151 million (2008: $4,568 million)3

Profit attributable to ordinary shareholders1 up 4.7 per cent to $3,279 million (2008: $3,131 million)3

Performance metrics2

Normalised earnings per share up 2.8 per cent at 179.8 cents (2008: 174.9 cents)

Normalised return on ordinary shareholders' equity of 14.3 per cent (2008: 15.2 per cent)

Recommended final dividend of 44.80 cents per share resulting in an annual dividend for 2009 of 66.03 cents per share up 7.2 per cent from 61.62 cents per share for 2008

Normalised cost income ratio of 51.3 per cent (2008: 56.1 per cent)

Advances-to-deposits ratio of 78.6 per cent (2008: 74.8 per cent)

Core Tier 1 capital ratio at 8.9 per cent (2008: 7.5 per cent4)

Total capital ratio at 16.5 per cent (2008: 15.6 per cent)

12 well and truely broken and 12 month low to boot!

Interim Management Statement.

Pre-close trading update.

TIDMGKO TIDMSTAN

RNS Number : 0165U

Greenko Group plc

15 December 2011

15 December 2011

Greenko Group PLC

("Greenko" or "the Group")

Standard Chartered to invest US$70 million in Greenko

Greenko, the Indian developer, owner and operator of clean energy projects, announces that its subsidiary Greenko Mauritius, has today secured commitment for a US$70 million investment from Standard Chartered (LSE: STAN). The proceeds from this investment will be used to support the development of renewable power projects in Greenko's strong developmental portfolio of 1.6GW dominated by hydro and wind assets.

In June, the Company announced its intention to seek finance at PLC and subsidiary levels in order to become fully funded to 1GW at a competitive cost of capital. Today's agreement with Standard Chartered follows the investment from General Electric Energy Financial Services announced earlier in the year and completes the process at a price which protects shareholders in the short term and enhances value going forward.

Greenko strongly believes that it will benefit from Standard Chartered's strong expertise and ability to deploy its balance sheet through debt solutions into its projects. Greenko will also benefit from Standard Chartered's commitment towards Sustainability of which renewable energy is a key theme. Standard Chartered has demonstrated investment expertise in the renewable space through mobilization of US$ 6.4 billion in debt and equity globally since 2008. This is also the first investment that Standard Chartered has made in the Indian renewables industry.

The investment by Standard Chartered includes a convertible tranche which entitles Standard Chartered to participate in the ipo of any of Greenko's subsidiaries, and under certain conditions provides Standard Chartered with the right to convert this tranche into the Group's main holding company shares at a mutually agreed internal rate of return.

Commenting on the deal, Anil Chalamalasetty, CEO and MD of Greenko, said: "We are delighted to partner with Standard Chartered, a leading global bank with a committed focus on sustainable energy investments. This, coupled with their strong presence in India, could provide us with financing solutions that could greatly enhance the return profile of Greenko's project assets and shareholder value. This announcement represents a further step in establishing Greenko as a leading renewable energy provider in India."

Commenting on the deal, Nainesh Jaisingh, Global Co-Head-Private Equity, Standard Chartered, said: "This investment expands our presence in one of the world's fastest growing power markets with a local and proven renewable energy developer and is in line with our client centric investment philosophy. Standard Chartered intends to support Greenko to propel them into the next stage of their growth. Given the funding profile and requirements of Greenko and the capabilities of Standard Chartered across products and geographies, we believe this will be a growing relationship"

Final Results.


Reported results

-- Profit before taxation of $6,775 million, up 11 per cent (2010: $6,122 million)

-- Profit attributable to ordinary shareholders(1) of $4,748 million, up 12 per cent (2010: $4,231million)

-- Operating income of $17,637 million, up 10 per cent (2010: $16,062 million)

-- Strong balance sheet growth. Customer advances up 9 per cent to $269 billion and customer deposits up 11 per cent to $352 billion

Performance metrics(2)

-- Dividend per share increased 10 per cent to 76.00 cents per share (2010: 69.15(4) cents per share)

-- Normalised earnings per share marginally up 0.5 per cent at 198.0 cents (2010: 197.0 cents)

-- Normalised return on ordinary shareholders' equity of 12.2 per cent (2010: 14.1 per cent)

Capital and liquidity metrics

-- Tangible net asset value per share increased 6.5 per cent to 1,355.6 cents (2010: 1,273.4 cents(3) )

-- Core Tier 1 capital ratio at 11.8 per cent (2010: 11.8 per cent)

-- Total capital ratio at 17.6 per cent (2010: 18.4 per cent)

-- Advances-to-deposits ratio of 76.4 per cent (2010: 77.9 per cent)

-- Liquid asset ratio of 27.5 per cent (2010: 26.6 per cent)

Significant highlights

-- Ninth successive year of record income and profit with compound annual growth of 16 per cent in income and 21 per cent in profit over this period

-- Wholesale Banking delivering over $5 billion of profit in a year for the first time and Consumer Banking growing profit by 26 per cent

-- Delivered a strong broad-based and diverse performance, with 24 markets generating income in excess of $100 million

-- Expense growth in line with revenue growth whilst continuing to invest

-- A highly liquid, well diversified and strong balance sheet with limited exposure to problem asset classes

-- Capital ratios continue to position the Group well to meet evolving regulatory requirements whilst continuing to grow

Interim Management Statement.

StanChart sees first-half profit growth slowing to under 10 percent

HONG KONG | Wed Jun 27, 2012 5:34am BST
(Reuters) - Standard Chartered said on Wednesday it expects pretax profit in the first half of this year to grow by less than 10 percent, slowing from previous years and hit by an appreciating U.S. dollar.

Pretax profit in the January-June is also expected to slow to below 10 percent, the bank said in a filing to the Hong Kong bourse, adding that headcount levels at the end of May were flat from the end of 2011.

The Asia-focused bank has so far weathered the downturn relatively well compared with its rivals, having reported a ninth straight year of record earnings in 2011 on the back of buoyant growth in emerging markets.

Pre-close Trading Update/a>.

Interim Results


Reported results

· Profit before taxation of $3,948 million, up 9 per cent from $3,636 million in H1 2011 (H2 2011: $3,139 million)

· Profit attributable to ordinary shareholders1 of $2,806 million, up 12 per cent from $2,516 million in H1 2011 (H2 2011: $2,232 million)

· Operating income of $9,511 million, up 9 per cent from $8,764 million in H1 2011 (H2 2011: $8,873 million)

· Loans and advances to customers up 4 per cent to $279 billion from $269 billion in H2 2011 and customer deposits up 2 per cent to $360 billion from $352 billion in H2 2011

Performance metrics2

· Interim dividend per share increased 10 per cent to 27.23 cents per share

· Normalised earnings per share up 11 per cent at 116.6 cents from 105.2 cents in H1 2011 (H2 2011: 92.8 cents)

· Normalised return on ordinary shareholders' equity of 13.8 per cent (H1 2011: 13.0 per cent, H2 2011: 11.3 per cent)
Capital and liquidity metrics

· Tangible net asset value per share increased 4 per cent to 1,413.7 cents (H1 2011: 1,354.6 cents, H2 2011: 1,355.6 cents)

· Core Tier 1 capital ratio at 11.6 per cent (H1 2011: 11.9 per cent, H2 2011: 11.8 per cent)

· Total capital ratio at 16.9 per cent (H1 2011: 17.9 per cent, H2 2011: 17.6 per cent)

· Advances-to-deposits ratio of 77.6 per cent (H1 2011: 78.1 per cent, H2 2011: 76.4 per cent)

· Liquid asset ratio of 27.9 per cent (H1 2011: 26.5 per cent, H2 2011: 27.5 per cent)

Significant highlights

· Record first half profit for the tenth successive year with consistent strategy delivering consistent performance.

· Strong broad-based and diverse performance spread across products and geographies.

· A highly liquid and a well diversified balance sheet with continued momentum and limited exposure to problem asset classes.

· The Group continues to be well capitalised to meet evolving regulatory requirements whilst leveraging the growth opportunities in our markets.

· Overall strength of the franchise and balance sheet acknowledged by virtue of being the only major international bank to be upgraded by all three ratings agencies since the onset of the financial crisis.

Banks have had a torrid time of it this year and, for that matter, the previous three or four years as well, but emerging markets focused operator Standard Chartered has emerged from the 'baker-bashing' era largely unscathed.

Just over a month ago the bank indicated that it had made a strong start to the year and that it was on course to "deliver a good performance in the first half of 2012".

The strength of the US dollar - the bank's reporting currency - might put a bit of a dampener on the figures, especially the contribution from the bank's Indian operations.

Double digit income growth is expected in several markets including China, Indonesia, Malaysia, Africa, and the Americas, UK and Europe region, and maybe Hong Kong.

Ooops

StanChart discussing sanctions compliance with U.S.

LONDON | Mon Aug 6, 2012 5:32pm BST

(Reuters) - Standard Chartered said it continues to discuss its historical compliance with U.S. sanctions with authorities, after New York's banking regulator said it conducted more than $250 billion (160 billion pounds) of transactions with Iran-related entities.

Standard Chartered bank 'in $250bn scheme with Iran'

Standard Chartered bank illegally "schemed" with Iran to launder as much as $250bn (£161bn) for nearly a decade, a US regulator says.

The New York State Department of Financial Services said that the bank hid 60,000 secret transactions for "Iranian financial institutions" that were subject to US economic sanctions.

It labelled UK-based Standard Chartered a "rogue institution".

The bank has been threatened with having its US banking licence revoked.

And to think that I once considered this to be one of the safer Banks.

This morning's reuters.

New York may pull Standard Chartered licence, says "rogue" bank hid $250 billion in Iran deals

ue Aug 7, 2012 5:33am BST

(Please be advised that paragraph 5 contains reference to language that some readers may find offensive)

By Jonathan Stempel and Carrick Mollenkamp

(Reuters) - New York's top bank regulator threatened to strip Standard Chartered Plc of its state banking license, saying the British bank was a "rogue institution" that hid $250 billion (160.28 billion pounds) in transactions tied to Iran, in violation of U.S. law.


From the BBC

Standard Chartered shares dip on laundering allegations

Shares of Standard Chartered bank have tumbled in Hong Kong despite the bank denying allegations that it illegally "schemed" with Iran to launder money.

Its shares fell as much as 7.5% to HK$174 in early trade.

Standard Chartered Statement

Standard Chartered has received the attached order from one of its regulators, the New York State Department of Financial Services. The Group had not received any prior notice of this order.

As reported previously, the Group is conducting a review of its historical US sanctions compliance and is discussing that review with U.S. enforcement agencies and regulators. The Group cannot predict when this review and these discussions will be completed or what the outcome will be.

To view the associated document please click on the link below: -

http://www.rns-pdf.londonstockexchange.com/rns/4285J_-2012-8-6.pdf

Ouch! -13.8%

Nomura has downgraded its rating for Standard Chartered (StanChart) from 'buy' to 'neutral' on the back of the allegations of dealings with Iran by the emerging markets lender.

Following the bank's, StanChart was Nomura's preferred stock in the sub-sector and on the basis of fundamental equity analysis, that would still remain the case, the broker said on Tuesday morning.

"However, in the face of allegations by the New York State Dept. of Financial Services that Standard Chartered Bank (SCB, US subsidiary of Standard Chartered plc) engaged in unauthorised Iranian transactions, we see material headline risk and downgrade the stock to 'neutral'."

--------------------------------------------------------------------------------------------------

Only downgraded to Neutral? Wonder what they have to do for a Sell rating then -):

risky buy? market cap down£10billion+!

Oochh...

SP recovering...... a storm in a teacup?

hali - you know how litigious the amis are, and the lawyers will just the love the chance of an action against a big corporate client .... that said, from the little i have heard, the senior management knew full well what they (the bank) was up to, and colluded to try to hide it

cynic we are not concerned about the unproven allegations more interested in making "a bob or two" on the rebound.

cynic made a nice day trade profit... isn't that the name of the game?

And Oooops again :-

Exclusive - U.S. regulators irate at New York action against Standard Chartered

NEW YORK/LONDON | Wed Aug 8, 2012 5:34am BST

(Reuters) - The U.S. Treasury Department and Federal Reserve were blindsided and angered by New York's banking regulator's decision to launch an explosive attack on Standard Chartered Plc over $250 billion (160.1 billion pounds) in alleged money laundering transactions tied to Iran, sources familiar with the situation said.

By going it alone through the order he issued on Monday, Benjamin Lawsky, head of the recently created New York State Department of Financial Services, also complicates talks between the Treasury and London-based Standard Chartered to settle claims over the transactions, several of the sources said.

Berenberg upgrade the stock from sell to hold. Up over 6% in early trading.

Is no-one trustworthy in Finance? Or is it a Big Game to those involved - like a day at the Funfair, when Auntie is paying?

Next we'll read that UK Gov has sold our Gold reserves, just when the price was low.

Oh Deary.

cynic did you catch the bounce?

In finance, money speaks not trust or human! everything is ignored as usual.... like politics

translation required?

*DJ US Regulators Are Said to Assert NY Regulator May Have Overstated Case Against Standard Chartered -CNBC >STAN.LN

hi hali ..... no, wouldn't even have wanted to attempt it ..... in fact, have taken a modest amount of money off the table by banking a decent profit on dow long ...... very much to my surprise, dow has now recovered strongly, but for sure there'll be a bad day sooner rather than later, and may get back in then

cynic every day the election draws closer..... high hopes!

nothing to stop me buying in at a higher level than that at which i sold ..... i have no hang-up for so doing if it looks right

Finished up 7% on the day, fair bit of mileage in this one to go before it settles.

Standard Chartered begins fightback on Iran allegations

WASHINGTON/LONDON | Thu Aug 9, 2012 6:39am BST

(Reuters) - Cowboy local regulator or the exposer of lax federal bureaucrats?

That's the key question being asked about New York banking regulator Benjamin Lawsky after his explosive charge that London's Standard Chartered bank abetted $250 billion (159.48 billion pounds) of money-laundering transactions with Iran.

Standard Chartered won help Wednesday from Britain's central bank governor, who portrayed Lawsky as marching to his own tune, and marching out of step with federal regulators in Washington. "One regulator, but not the others, has gone public while the investigation is still going on," the Bank of England's Mervyn King said at a news conference in London.

Tempted to enter, but still not sure on this one yet.

Then don't. If the U.S. can prove their accusation and revoke their banking licence in the U.S. then STAN will lose more than 50% of their current value, imo. A huge amount of STAN's business is based on commercial transactions in $, so losing their U.S. licence would cripple them. Of course the U.S. are litigation crazy and are likely to settle out of court, but until that cloud disappears, STAN are high risk at present, imo.

Once again, given the rebound in the share price -- and strong denials of wrongdoing by the bank's management -- it wasn't much of a surprise to discover that Standard Chartered (Xetra: 859123 - news) was the single-most popular buy among private clients of stockbroker TD Direct Investing between the market's opening and 12 noon.

Having had £11 billion wiped off its value on Tuesday as the allegations broke, the bank's management is now robustly pointing to a mere 300 transactions, worth just $14 million, that were in breach of American anti-Iran legislation. At that level, the loss of a banking license is most unlikely -- and so is the likelihood of a large fine.

Now down less than 10% against the FTSE 100 (Euronext: VFTSE.NX - news) (UKX) over the week -- as opposed to 24% on Tuesday -- Standard increasingly looks like a successful crisis play for those investors bold enough to have bought in at the bottom on Tuesday.

Standard Chartered's Peter Sands takes the fight to Wall Street

From the above link :-

Bank sources have told The Sunday Telegraph that after several settlements with other banks in relation to similar issues – most notably Lloyds' $350m settlement in 2009 over breaching US sanctions on Iran – Standard Chartered began a detailed review of all U-turn payments from 2001-2007.

The analysis was completed at the end of 2011, and Standard Chartered's counsel have been involved in discussing next steps – a global settlement – with five regulators, one of which was the DFS.

The process has also involved interviews of senior and other executives, believed to include Sands himself and Lord [Mervyn] Davies, who was chief executive at the time the transactions took place.

The analysis covered 150m separate transactions, and under the bank's analysis, it found "a little under 300", totalling $14m in value, which were invalid U-turn payments.

"That's clearly wrong, we're sorry those mistakes occurred," Sands admitted last week. But what he refutes is that, as Lawsky alleges, there was a systematic attempt to circumvent sanctions. "The immediate question you ask is how do you get to $250bn?" Sands continued. "It's a figure which we don't completely recognise, but it is of the order of the total amount of U-turn payment transactions processed by Standard Chartered New York in the period 2001 to 2007.

"To conclude they were all invalid or in breach is to conclude everything we did in the U-turn mechanism was wrong."

Standard Chartered, facing hearing, talks dollars on Iran probe

Mon Aug 13, 2012 4:27am BST

(Reuters) - Standard Chartered Plc and New York state regulators have discussed a settlement amount to resolve an inquiry into whether the British bank's records improperly hid transactions tied to Iran even as the bank prepares for a hearing to defend its New York license, according to sources familiar with the situation.

The dual tracks highlight the uncertainty of the situation facing Standard Chartered (STAN.L) as it enters a second week at odds with New York's Department of Financial Services, which alleged August 6 the bank hid transactions tied to Iran. The state agency, headed by Benjamin Lawsky, ordered the bank to explain why it shouldn't lose its license at a hearing scheduled for Wednesday.

(Reuters) - Standard Chartered Plc has agreed to pay $340 million (£216.67m) to settle allegations that it hid transactions with Iran from regulators, the New York Department of Financial Services said on Tuesday.

The announcement capped a week of intense negotiations and came less than 24 hours before the London-based bank was scheduled to defend itself against the allegations at a hearing in New York.

New York Financial Services Superintendent Benjamin Lawsky on August 6 alleged the bank had hidden Iran-linked transactions with a total value of $250 billion and called it a "rogue institution" for breaking U.S. sanctions laws.

The allegations, and a threat to revoke its license to do business in New York state, hit the bank's share price last week. Chief Executive Peter Sands strongly denied the charges and said illegal transactions totalled less than $14 million.

In its announcement on Tuesday, the department said the bank had "agreed that the conduct at issue involved transactions of at least $250 billion."

The bank did not immediately comment on the announcement.

that's too good to believe.

"The bank did not immediately comment on the announcement." No to busy p*ss**g themselves I expect.. watch them shares go tomorrow.

:-)

Further to the post above Standard Chartered reaches $340 million settlement over Iran

Ian Gordon, an analyst at Investec Securities in London, said that the risk of further regulatory costs "appear sufficiently contained" to allow the bank's shares to build on a rally from their lows after Lawsky brought his case last week.

"Standard Chartered's management team have conducted themselves admirably in the face of extreme provocation," Gordon said.

Currently up 6.51%

pre-market indicates +75

Citigroup comment:
"We name STAN as one of our Most Preferred Stocks. During 3Q SC shares decoupled from the positive tone of the sector, weighed down by fears of China / EM slowdown, asset quality concerns, a short and sharp shock from New York and core shareholder stock overhang concerns. STAN shares have lagged the European bank sector by c15% ytd. We retain our Buy rating."

Interim Management Statement

Peter Sands, Group Chief Executive, commented, "Standard Chartered has continued to perform strongly in the third quarter of 2012. Although the environment remains turbulent, we are in the right markets and continue to see good momentum across our businesses and geographies. Lending and deposits have both increased over the last three months as we continue to support our customers and clients. We manage the Group conservatively with costs controlled tightly and risk well managed. Our balance sheet philosophy remains a source of competitive advantage with a focus on diversity, high levels of liquidity and a strong capital position."

SCPLC Reaches Final Settlement with US Authorities

LONDON, December 10, 2012 -- Standard Chartered PLC announces it has reached final settlements with the Office of Foreign Assets Control ("OFAC"), the Federal Reserve Bank of New York, the Department of Justice and the New York County District Attorney's Office regarding historical sanctions compliance and U.S. dollar payment practices primarily between 2001 and 2007.

The settlements are the product of an extensive internal investigation that led the Bank voluntarily to report its findings concerning past sanctions compliance to these U.S. authorities, and nearly three years of intensive cooperation with regulators and prosecutors.

Under the terms of the OFAC Settlement Agreement, the Deferred Prosecution Agreements with the Department of Justice and the District Attorney's Office, and the Cease & Desist Order and Order of Assessment of a Civil Money Penalty with the Federal Reserve, no further action will be taken against Standard Chartered by these authorities if it meets the conditions set out in the agreements.

Among the conditions is payment of a cash amount of $327 million, which will be paid in the second half of 2012.

Final Results

Standard Chartered PLC - Highlights

Reported results

· Profit before taxation of $6,876 million, up 1 per cent (2011: $6,775 million)
· Profit attributable to ordinary shareholders1 flat at $4,786 million (2011: $4,748 million)
· Operating income of $19,071 million, up 8 per cent (2011: $17,637 million)
· Customer advances up 6 per cent to $289 billion and customer deposits up 10 per cent to $390 billion

Performance metrics2

· Dividend per share increased 10.5 per cent to 84.00 cents per share (2011: 76.00 cents per share)
· Normalised earnings per share up 13.7 per cent to 225.2 cents (2011: 198.0 cents)
· Normalised return on ordinary shareholders' equity of 12.8 per cent (2011: 12.2 per cent)

Capital and liquidity metrics

· Tangible net asset value per share increased 12.1 per cent to 1,519.0 cents (2011: 1,355.6 cents)
· Core Tier 1 capital ratio at 11.7 per cent (2011: 11.8 per cent)
· Total capital ratio at 17.4 per cent (2011: 17.6 per cent)
· Advances-to-deposits ratio of 74.1 per cent (2011: 76.63 per cent)
· Liquid asset ratio of 30.4 per cent (2011: 27.83 per cent)

Significant highlights

· Tenth consecutive year of growth in income and profit, underpinned by the diversity of the Group, where 26 markets delivered over $100 million of income and 25 markets grew at a double digit rate
· Both China and Wholesale Banking in Africa reached $1 billion of income for the first time
· Our balance sheet remains in excellent shape, highly liquid and diverse with no material geographic or industry concentrations, and we enjoy continued capital strength with a Core Tier 1 ratio at 11.7 per cent

Credit Suisse note today:
FY12 results – first thoughts
■ Results were in line and less messy than HSBC yesterday. Targets reiterated but with the stock now trading at 1.9x last reported TNAV we remain UP.
■ In line results – Standard Chartered reported FY PBT of $6,876mn which was bang in line with December guidance which implied $6,875mn although they also had a $90mn gain from debt buybacks in Q4 and a lower bank levy than expected. Across the group P&L all the items appear in line. Sticking to the four targets with the group commenting that ‘2013 has started well.’
■ Capital – Basel 2 of 11.7% (vs. CSe 11.3%) vs. 11.6% at H1 and a slight decline from 11.8% at YE 2011. The bank has reiterated guidance of c.100bps Basel 3 impact. We were going for a fully loaded Basel 3 ratio of 9.8% YE 2012 but the adjustments are done on a different basis. RWAs came in at $302bn vs. $286bn last reported (11.0% annualised growth rate). TNAV per share $14.6 vs.$13.5. H1 2012 and DPS of 84c implies 3% yield.
■ Wholesale Banking – FY12 PBT at $5,803mn (ex US fines) vs. CSe $5,979mn with in line revenues, costs were higher as were provisions. In terms of outlook the bank commented on Wholesale Banking income being ahead of the comparable period last year, which we would expect; with own account income down yoy reflecting lower ALM income. Note we expect Wholesale Banking income to grow by 5% p.a. in 13E-14E.
■ Consumer Banking – FY12 PBT came in at $1,778mn vs. CSe $1,650mn with revenues ahead, costs were broadly in line and higher provisions. In terms of outlook the bank commented on Consumer Banking income being ‘well ahead’ of the comparable period last year. We expect Consumer banking income to grow by 5% in 13E and 6% in 14E.

Stanchart sees first-quarter profit decline on increased costs

HONG KONG | Wed May 8, 2013 5:52am BST
(Reuters) - Standard Chartered said on Wednesday its first quarter operating profit was likely to be slightly lower than a year ago as an increase in hiring, and wages, pushed up costs.

London-based Standard Chartered, which earns about four-fifths of its income from Asia, said group expenses were up by a low single digit percentage, while the additional 560 employees it hired in the quarter, and wage inflation, had pushed staff costs up by a high single digit percentage.

Overall income would be slightly higher compared to the same year-ago period, the bank said, thanks to client volume growth. Standard Chartered does not issue full quarterly numbers, and releases its earnings twice a year.

Interim Management Statement

Numis Buy 1,612.50 1,700.00 2,057.00 2,057.00 Upgrades

Investec Buy 1,612.50 1,700.00 1,900.00 1,900.00 Reiterates

Credit Suisse Underperform 1,612.50 1,700.00 1,400.00 1,400.00 Retains

Citigroup Buy 1,612.50 1,700.00 1,900.00 1,900.00 Retains

Bank of America Merrill Lynch Buy 1,612.50 1,700.00 1,865.00 - Reiterates

Espirito Santo Execution Noble Buy 1,612.50 1,700.00 1,970.00 1,970.00 Retains

Down nearly 5%.. recovery play anyone?

Interim results part 1

Reported results1

· Profit before goodwill impairment and own credit adjustment is up 4 per cent at $4,088 million, from $3,936 million in H1 2012 (H2 2012: $2,915 million)
· Reported profit before taxation after goodwill impairment charge of $1,000 million relating to Korea is $3,325 million. Reported profit attributable to ordinary shareholders2 is $2,131 million
· Operating income excluding own credit adjustment is $9,751 million, up 4 per cent from $9,371 million in H1 2012 (H2 2012: $9,412 million) and up 5 per cent on a normalised basis3
· Customer advances up 3 per cent to $292 billion from $285 billion in H2 2012 and customer deposits marginally lower at $381 billion from $385 billion in H2 2012

Performance metrics3
· Interim dividend per share increased 6 per cent to 28.80 cents per share
· Normalised earnings per share up 5 per cent at 121.9 cents from 116.6 cents in H1 2012 (H2 2012: 108.7 cents)
· Normalised return on ordinary shareholders' equity of 13.3 per cent (H1 2012: 13.8 per cent, H2 2012: 12.4 per cent)

Capital and liquidity metrics
· Tangible net asset value per share increased 9 per cent to 1,537.9 cents (H1 2012: 1,414.1 cents, H2 2012: 1,519.9 cents)
· Core Tier 1 capital ratio at 11.4 per cent (H1 2012: 11.6 per cent, H2 2012: 11.7 per cent)
· Advances-to-deposits ratio of 76.6 per cent (H1 2012: 77.6 per cent, H2 2012: 73.9 per cent)
· Liquid asset ratio of 28.3 per cent (H1 2012: 28.3 per cent, H2 2012: 30.5 per cent)

Significant highlights
· Delivered broad based performance across multiple markets, including excellent performances from Hong Kong, India and Africa
· Profit before taxation in Hong Kong was over $1 billion for the first time in a six-month period
· Income of over $50 million in 25 markets and 17 markets delivered double digit growth
· Strong volume growth with market share gains in key products, including trade finance volumes up 18 per cent and cash FX volumes up 30 per cent
· The Group remains highly liquid and well capitalised
· Re-opened in Myanmar and announced the acquisition of a custody business in South Africa
Commenting on these results, the Chairman of Standard Chartered PLC, Sir John Peace, said:
"These results demonstrate the diversity and resilience of our business. Despite a difficult external environment, we continue to support our clients' growth aspirations. We have a strong balance sheet and ample liquidity. Income in both businesses accelerated in the second quarter and we have entered the second half of the year with good momentum. The Board remains confident for the long term."

Interim Management Statement

Peter Sands, Group Chief Executive, commented,

"In the third quarter, we delivered a resilient performance despite an uncertain macro environment, with continued strong levels of client activity and good volumes across many of our markets. Our diversity by market, product and industry has underpinned our performance in the quarter, as has our ongoing tight control of costs and risk."

For comparative purposes, the following commentary excludes the impact of the UK bank levy, now estimated to be around US$260 million, the Own Credit Adjustment, the impairment of goodwill in respect of Korea and the payment of US$340 million in the third quarter of 2012 to the New York State Department of Financial Services ('NY DFS').

'Year to date' refers to the nine months ended 30 September 2013 and comparisons are made to the same nine month period in 2012 unless otherwise stated.

The resilience of the third quarter performance was underpinned by continued strong client activity despite a volatile market environment. The quarter started well but slowed as usual in August. The difficult market conditions that arose in August also had an impact on September.

As in the first half, Consumer Banking has continued to grow income at a mid single digit percentage for the year to date. In Wholesale Banking, Client Income also grew at a mid single digit rate for the year to date, with strong volumes offsetting a lower margin environment than 2012. The key pressures on year to date performance are the ongoing weakness in Own Account income and continued market uncertainty.

Since the Group's interim results, there has been some depreciation in a number of emerging market currencies including the Indian Rupee and Indonesian Rupiah. Based on current rates, the full year impact would be some US$200 million on income and around US$70 million on profits.

Against this backdrop, the Group overall has grown income at a low single digit rate year to date, with income in the quarter down by a low single digit percentage compared with the third quarter of 2012.

Our income performance remains broad based by geography, client segment and product. Hong Kong and Africa have delivered strong performances and continue to grow income and profit at double digit rates for the year to date. These strong performances have offset weaker performances in Korea and Singapore where income in both markets declined by single digit percentages for the year to date.

Costs remain well controlled, and have grown in line with income in the year to date, despite accommodating significant increases in regulatory and compliance costs, and continued investment in the businesses. Costs in the quarter were broadly flat on the third quarter of 2012.

For the full year, we now anticipate a non-recurring tax related cost in Korea of some US$60 million.

Total impairment for the Group in the third quarter was below the first half run rate, at less than US$300 million, although it was ahead of the levels seen in the equivalent quarter of 2012 by some tens of millions of dollars. This reflects, in the main, the continued elevated loan impairment levels in Consumer Banking and limited impairment in Wholesale Banking.

Early Alerts have remained at broadly the same levels as in the first half of 2013. For the last couple of years we have said that we remained watchful in India where we have further tightened our underwriting criteria. We continue to keep our portfolio under tight control given the prevailing macroeconomic conditions.

As a result, the Group's operating profit for the year to date was up by a low single digit percentage when compared with the prior period.

The balance sheet remains strong, diversified and highly liquid.

Pre-close Trading Update

Canaccord Genuity Sell 1,327.25 - - Reiterates

JP Morgan Cazenove Neutral 1,327.25 1,750.00 1,500.00 Reiterates

Nomura Buy 1,327.25 1,810.00 1,690.00 Retains

Deutsche Bank Hold 1,327.25 1,645.00 1,645.00 Retains

Looking at it first drop in profits in a decade, problems in South Korea and certain currency issues. Looking at volume the outlook for the bank is now unclear and downgrades yet to be felt. I've gone short @1312.19, 1228 being last years low I think will now be tested.

Crumbs! Can't trust any Share these days can we.

Short position closed for a nice profit.

Shortie, I've been short from @1390 - 1400/1450 long gone.

I still think this has further to fall with 1228 to be tested. I'm not sure how long this will take though so have decided to move on. If the possibility of a rights issue fizzles out then the stock may even rally back to support.

Just closed here +102.

Good profit, you changed your view then?

Not really to be honest, but I've taken a couple of largish points positions off the table today.

I'm still looking to the short side, but have had 3 FTSE longs and only 1 FTSE short yesterday and today and I'm not short atm - which I may regret looking at it now.

Investec has lowered its target price for Standard Chartered from 1,900p to 1,700p but has retained its 'buy' recommendation, saying that it doesn't see any capital issues at the emerging markets-focused lender.

Analyst Ian Gordon said that the recent debate about capital which has weighed on the share price in recent weeks has been "contrived", highlighting that the bank's fully loaded Basel-3 core tier-1 capital ratio stood at 10.5% in June - "the strongest of any UK bank". "We expect sufficient visibility to emerge by Q1 2014 to drive both consensus upgrades and a re-rating. We see no capital issue at all."

Ian Gordon of Investec :
We have always (historically) had a rather long list of reasons why Standard Chartered will never become a serious M&A target – its (former) premium valuation, a “Management premium”, size, complexity and an absence of obvious deal synergies. Indeed, depending on the identity of any would-be bidder, we can envisage significant dis-synergies! That list may have become a little shorter, but surely M&A talk is only being entertained today due to the market’s current (and we believe temporary) mispricing of the shares? BUY.
CEO Peter Sands has (rightly) put his neck on the line by dismissing speculation of a possible rights issue as “rubbish”. As discussed in our report, Everyone seems to know the score, they’ve seen it all before?, 13 January, Standard Chartered starts from a position of extreme capital strength, (CET1 CRD IV ratio of 10.6% at 30 June 2013 vs 2nd placed HSBC (Buy) on 10.1%). Moreover, on our forecasts, we see the CET1 CRD IV ratio expanding to 11.3% by 2016e notwithstanding our expectation of sustained asset growth (coupled with recovering RoRWAs). We concur with Peter’s assessment.
Peter has also dismissed recent M&A speculation as “rubbish”. On the basis that we fail to see a convincing case for material deliverable revenue or cost synergies, we are inclined to agree. Indeed, Standard Chartered’s rare status as an International bank with (arguably) local bank characteristics (and privileges) presents quite material transactional risks. We do not expect a bid.
Yet STAN currently trades on just 7.6x 2016e EPS, making it, in sharp contrast to history, THE cheapest UK bank. In our view, either the share price upwardly corrects to reflect our, (or even consensus), expectations, or M&A speculation may still be encouraged by an opportunity to obtain value WITHOUT clear deal synergies. This in itself offers share price support. Also, regulatory anomalies such as the UK bank levy now offer a deal rationale which never used to exist."

Credit Suisse note:
"We have been negative on the stock for some time now, and STAN has been one of the worst performing banks globally over the past 12 months. Given this underperformance and some of the positive aspects of its franchise, we expect greater M&A discussion. Fundamentally, however, with the shares at 1.3x PTNAV (2014E) we remain Underperform, and our TP is unchanged at 1,250p.
■ The attractions: The group has derated from 2.0x P/B to 1.1xP/B, and we are going through a period of management change, potentially making the group more vulnerable. Furthermore, we view several parts of the franchise as attractive, in particular the deposit base (1H13 LDR 77% with CASA of 51%) and the transaction / trade finance business.
■ The challenges: The market cap is still $54bn and the group has $650bn of assets, so the pool of potential acquirers with sufficient size is small. Regulation has increased, with a bias against banks getting bigger via items such as GSIFI charges, which makes deal maths less favourable. The outlook for several of the group's markets has also deteriorated over time.
■ Our conclusions: (i) Potential suitors are most likely to be in Asia, with ANZ, major Chinese banks (ICBC, CCB) and Japanese banks (MUFJ, SMFG) the largest, (ii) ICBC and CCB would find it easier to digest STAN given their relative size, it would be a merger of equals for ANZ, while the deal maths appear better for the Japanese banks, (iii) a deal would likely have to be equity funded, and hence would require significant issuance by an acquirer ($50bn+), (iv) dilution would be significant without sizeable synergies.
■ Fundamentally we remain U/P: We see risk to the capital base and greater uncertainty from the group reorganisation. On capital, we estimate UK peers will be at 12.6% CET1 by 2015E vs STAN at 10.2%. To achieve 12% CET1 by 2015, STAN's capital would need to be US$7.5bn higher."

Pre-close trading update

StanChart third-quarter profit tumbles, an extra $400 million in cost cuts eyed

LONDON (ShareCast) - Analysts at Numis Securities and Investec have cut their target prices for shares of Standard Chartered after the emerging markets-focused bank warned that second-half underlying profits would be below last year's.
The stock fell sharply on Tuesday morning after StanChart issued its second profit warning this year after third-quarter pre-tax profits fell 16% to $1.8bn. In August, the company had predicted that underlying profits would improve in the second half.

Numis has trimmed its target from 1,400p to 1,200p and downgraded its rating for the stock from 'add' to 'hold', saying it had reduced its forecasts for this year and was reviewing its forecasts for the next.

Analyst Mike Trippitt highlighted "subdued income momentum and higher third-quarter impairments, a higher bank levy, plus regulatory and restructuring costs".

He now expects StanChart to generate $5.81bn in pre-tax profit for 2014, 6% lower than his earlier $6.18bn forecast and below the $6.06bn reported in 2013.

Meanwhile Investec analyst Ian Gordon lowered his target from 1,450p to 1,350p, but still recommended investors buy the stock.

While costs and impairments were higher than expected, he said that StanChart had "encouragingly" delivered a slightly-better-than-expected revenue performance, with turnover up 1% year-on-year.

"We believe that the primary source of investor disappointment over the past 18 months has come on the revenue line [...] As such, we do not expect to be disappointed vis-à-vis our current forecast of a 3% H2/H2 revenue improvement," he said.

Soc Gen note:
"Update We cut our target price 25% to 1085p from 1450p and our recommendation from 'Buy' to 'Hold'.
Standard Chartered has faced a number of revenue headwinds over the past year. Now it seems that costs are starting to bite as well (wage inflation, compliance costs), and we wonder if a more aggressive approach is needed to tackle this problem. Relative to its returns, Standard Chartered looks inexpensive against both European and Asian peers, but we do not expect this value to be realised over the next few quarters.
SocGen view The cost miss was particularly disappointing given that the revenue headwinds finally seem to be easing, and Q3 revenues were actually slightly up. We would expect that this margin progress will be sustained as trade margins improve and FICC comparatives become easier. Offsetting some of that margin progress, however, is a loan book that is flat on the year as underlying growth is offset by a tougher approach on clients taking only the low return products, and continued shrinkage in South Korea.
How we value the stock We use a sum-of-the-parts model to derive our 1085p target price. Our lower TP reflects the earnings downgrades plus lower multiples applied to the wholesale businesses to reflect our view that management looks likely to opt for business-as usual changes rather than a more aggressive plan. We value each division separately, using our estimates for sustainable returns, cost of equity and long-term growth. Standard Chartered trades at 0.91x 2014 tangible book value for a forecast return on tangible equity of 11.6%. To reflect the trends mentioned above, we have cut our EPS forecasts by 9%/10%/13% for 2014-16 respectively.
Events, catalysts & risks: Standard Chartered is participating in the Bank of England’s UK bank stress test, the results of which will be announced in December. We expect Standard Chartered to pass, and note that the BoE’s tougher macro scenario versus the EBA’s European test centres around UK property exposure, to which Standard Chartered has little. Possible upside risks to our target price include a more aggressive approach to restructuring (particularly the cost line) than we expect, and perhaps some M&A speculation given the group’s weak share price. Downside risks to our target price include further problems in the Chinese commodities sector (which would push up impairments) or any delay to the timetable for US rate rises (which would be negative for the margin)."

StockMarketWire.com
Standard Chartered has booked FY pretax profits, including exceptional items, of $4.24bn, down 30% on the year. It recorded losses from bad loans of $2.14bn, from $1.62bn.

Operating income fell 2% to $18.23bn.

Chairman Sir John Peace said:

"2014 was a challenging year and our performance was disappointing, but it was also a year when we took decisive action to refocus our strategy and to reposition the Group for the future and to restore shareholder value."

CEO Peter Sands commented:
"We are reshaping the Bank to respond to the way our world has changed and to ensure we fulfil our aspiration to bank the people and companies driving trade, investment and the creation of wealth across Asia, Africa and the Middle East.

"I leave Standard Chartered proud of what we have achieved and confident about what the future holds for this extraordinary institution."

(Reuters) - Standard Chartered has no plans to tap shareholders for cash, it said on Wednesday, despite reporting a 25 percent drop in profits last year on the back of soaring bad loans.

The Asia-focused bank said it would not take "knee-jerk actions" and vowed instead to cut costs and shrink its loan book in an effort to quell concerns about its capital strength, the main task facing its new chief executive Bill Winters.

The bank is already braced for a fundamental overhaul when the former investment banker takes over as chief executive in June, with analysts and investors expecting him to launch a multi-billion pound rights issue to reboot capital after a prolonged slump in profits.

"It's the million-dollar question: has Bill Winters signed up for these targets?" said Mike Trippitt, analyst at brokerage Numis Securities.

"You can't sit there waiting for the cavalry to arrive and you've got to get on and run the business ... but he (Winters) is going to go through business unit by business unit and decide which ones to keep, what to grow and what to sell."

The bank's share price was up 3.7 percent at 1010 pence by 12.45 p.m., still down by 25 percent since the start of last year.

However, the price has rallied by 9 percent since Winters' appointment was announced last week, part of an investor-led purge of top brass including veteran chief executive Peter Sands, three non-executive directors and the bank's head of Asia, Jaspal Bindra.

Chairman John Peace will also step down amid disquiet at management's failure to deal quickly with concerns about strategy and rising bad loans.

After a one-third rise in losses from bad loans last year to $2.1 billion (1.4 billion pounds), mainly due to problems in China, India and among commodities firms, the bank admitted: "With hindsight, there were clients and situations we should have avoided."

That dragged down underlying pretax profit last year to $5.2 billion, the second successive annual fall after a decade-long run of record profits came to a screeching halt in 2013 as Asia's credit binge turned sour.

AFTER THE STORM
Sands described 2014 as a perfect storm of falling commodity prices, persistent low interest rates and negative sentiment towards emerging markets.

It was premature to call the peak on bad debts but the bank said it had seen no sign of further deterioration this year and had cut its loans to commodities firms by $6 billion to $55 billion.

It also cut its staff bonus payments pool by 9 percent to 667 million pounds and said none of the directors who was at the bank all year will get a bonus for last year, although that did not include Finance Director Andy Halford, who joined in July.

Sands, who more than doubled the size of the bank since taking over the helm in 2006, said the bank would now aim to save $1.8 billion from 2015 to 2017, making small disposals and cutting between $25 billion and $30 billion in risk-weighted assets from its balance sheet.

The bank is now aiming for a return on equity of above 10 percent, lower than the mid-teens percentage the bank had previously sought, and a core capital adequacy ratio of 11-12 percent of risk-adjusted assets from this year onwards, having fallen to 10.7 percent at the end of 2014 from 11.2 percent at the end of 2013.

The cost savings will come from $400-500 million of efficiency improvements a year and $300-600 million from selling or closing more underperforming businesses.

The bank wrote down the value of its loss-making Korea business by $726 million, following a $1 billion writedown in 2013. It is closing branches and reshaping operations there.

"2014 was clearly disappointing," Sands said. "I am confident the way we are reshaping the bank will get us back to a trajectory of profitable, sustainable growth.

"We acknowledge that investors have been concerned about capital, risk, costs and income growth," he said.

However, Winters is expected to take a harder line on the bank's costs and sprawling structure, which have been likened to a collection of fiefdoms.

"I suspect that Winters will want to be reasonably unfettered when he starts, so I cannot see the targets of an outgoing CEO being binding," one top-20 investor said.

Interesting note from Bernstein:
"Our short on STAN was based on three things: 1) Margin compression on the back of competition excess liquidity 2) Idiosyncratic risk on the balance sheet and 3) Cyclical risk in markets such as HK and Singapore on the back of US rate rises. As we wrote in a note last November, point one is done and the idiosyncratic risk is also in the Street's numbers. On the last point, the latest round of derisking in the bank – which is likely to continue this year - has taken out significant cyclical tail risk. Given the de-risking disposal options open to Standard Chartered, the pace of organic build of capital and the fact that the bank is going to come to market with eligible AT1s in the first half – this all makes the chances of a capital issue less likely. And then there are the tailwinds that have started appearing. Volatility in FX and rates are already starting to impact. So is dollar strengthening on the LN stock. Trade and cash volumes looks likely to rebound next year given rock bottom comps. The bank should also be able to reprice margins upwards from a 3 year free fall as US base rates rise. 2015 earnings should be the bottom and given the rebound potential, we believe the Street will move on to pricing 2016/2017 in the next 12 months. That’s a significant upside to start building positions in at current levels. Hence we are getting in. Outperform with TP: 1200"

Cazenove note today:
"Although we were hesitant to change our view for the arrival of the new CEO which has been a material positive, we believe that last week’s UK budget may lead the market to attach a higher probability of strategic actions to change domicile and unlock value. We believe normalised ROTE for STAN in an alternative domicile such as Singapore/HK would be higher (c12-13+%) than the current c10-11% and STAN’s fully loaded CT1 target of 11-12% is inline with Asian bank requirements. At 0.9x P/TNAV 16E we believe a re-domicile would be accretive despite our assumed $2.5bn one-off costs. We also model c50% of the rate benefit implied by the Fed’s dot plot given STAN is now more US rate sensitive than HSBC (LDRs), taking EPS +8% and PT to 1250p. With 16% upside and valuation 0.9x P/TNAV at discount, we upgrade to OW.
 Implications of the rising levy: Following last week’s increase in the UK bank levy, we estimate that StanChart is the most impacted UK bank with the levy reducing EPS by 13% in 2017E. Although the group may be able to reduce this given the change in the growth strategy, we believe that a strong case for re-domicile is now on the table. The group has previously indicated that the costs of a re-domicile would offset the earnings benefit; our analysis implies that RoTE would rise by at-least 1.3% assuming a $2.5bn one-off charge in 2017 leading to over 20% upside.
 Capital to improve organically with RWA reduction helping: In our view, the CT1 target of 11-12% fully phased from 2015 is inline with local Singapore and HK banks with flexibility to improve further organically with management focus on RWA reduction and short tenors. Although there is downside risk from provisions to 2015 earnings, we also note that the group outlined a possible $50bn of RWA reduction in the PRA stress test showing the benefits of a short duration balance sheet. We do see risk around dividend payout and possibility of scrip payment instead of cash or a cut.
 Rate sensitivity could add 34% from 2015E EPS base, materially more than HSBC: With its LDR now at 70%, below HSBC’s 73%, our detailed rate sensitivity analysis shows StanChart is more geared to rising US rates.
We estimate a $1.4bn positive benefit to NII for a +200bp rise in US rates (+2.6% for RoTE), of which we assume 50% in our numbers."

Barclays note today:
"Reported PBT of $2,098m is 28% below consensus with underlying PBT of $1,824m 37% light. The miss is due to a combination of significantly worse provisions and weaker net interest income. This is said to be a continuation of previous trends, driven by Chin, India and commodities, with provisions up 70% YoY and 15% higher HoH and the NPL ratio deteriorating 30bp HoH to 3.1%. However, the capital position has been materially strengthened with a fully loaded CET1 ratio of 11.5% vs 10.7% at FY15. The dividend of 14.4c is 50% below our expectation. So the balance sheet is in much better shape but with a weak P&L.
New CEO Bill Winters: Acknowledges that there are many more challenges ahead including an acknowledgement of structural change in the industry. He sees them as fixable and targets an RoE of over 10% and is focused on 5 areas: on risk and returns, where have or can build competitive advantage, upgrade or exit low returning client relationships faster, become commercial in leveraging lending relationships into Financial Markets products, changing the organisational structure already underway.
Credit quality review ongoing: The new CEO has begun but not completed a review of the balance sheet. Concentrations in the corporate segment are being reduced and retail unsecured is also being scaled back. The CEO generally sees the credit culture as sound but sees scope for tightening up both credit and pricing decisions and setting a new risk appetite and policies.
No decision taken on whether more capital is required: Despite getting well into the previously targeted range, capital targets remain under review, taking into account capital generation and the BoE stress test currently underway (focused on EM). Capital levels will be set with the intention of staying “absolutely and relatively strong through economic cycles” while also absorbing conduct costs – will raise capital if needed for the long term benefit of the Group, wont if not.
CET1 ratio up 80bp HoH to 11.5%: Well within the previously targeted 11-12% full year range, driven by RWA reduction. RWAs fell $15 billion driven by loan provisioning asset reductions, loan sales and almost $4 billion in RWA efficiencies, this is the first part of the $25 to $30 billion of savings which outlined in March.
Bottom line = likely consensus downgrades of at least 25%. We continue to see balance sheet shrinkage as a source of capital generation which will have a knock-on impact on revenues. The credit environment in which STAN operates is already deteriorating (and this is before a Fed hike) and suggests rising impairments. Our 2017 EPS estimates are 25% below the consensus."

Standard Chartered has posted a disappointing third quarter book due to challenging market conditions combined with business divestments and de-risking initiatives. It saw an $832m dip in income for the period, down to $3.68bn, due to a decline in client activity as a result of volatile market conditions and the impact of de-risking actions. That led the company to reports a loss of $139m for the quarter, down from $1.53bn in the previous year. In the year to date, profit is down from $4.8bn last year to $1.68bn.

when is the entitlement date?

no divi further to , fall 465 most likely. BB ps stayed away from high divi.
old saying don't look a gift horse in the mouth.

If I buy the shares today, am I going to entitles to the rights?

This is all over the place today. The bots seem to be having a disagreement of what the stock is worth

Standard Chartered profit misses forecasts.

LONDON-- Standard Chartered PLC on Tuesday said its financial performance is "not yet acceptable," as it posted a $458 million pretax profit that fell short of analyst expectations.

Revenue for the Asia-focused bank was $3.47 billion in the three months, down from $3.68 billion in the third quarter of 2015, while bad loans fell to $596 million, from $1.23 billion in the same period last year.

A year ago, Standard Chartered posted a $139 million pretax loss for the third quarter and stepped up a program to shrink its balance sheet and pull back from riskier business. The profit-and-loss figures don't include restructuring charges and adjustments for the value of the bank's debt.

Analysts had expected adjusted pretax profit of $601 million for the quarter. The bank didn't release net profit figures but after adjustments the pretax profit was $153 million for the quarter, from $430 million last year, reflecting fluctuations in the value of Standard Chartered bonds.

Standard Chartered has reported an 82 per cent rise in first-half profits, but shares in the emerging markets bank fell amid investor frustration at how long its turnround is taking.

Having slumped to its second heavy annual loss last year, StanChart said it achieved 5 per cent growth in its loan book, driven by growth in corporate finance, trade finance and mortgages.

The bank, which operates across Asia, the Middle East and Africa, reported a statutory pre-tax profit of $1.8bn for the first six months of this year, compared with $963m in the same period last year.

Revenues were up 3 per cent at $7.2bn. The bank’s operating expenses rose 7 per cent to $4.9bn. Loan impairments almost halved to $655m. Analysts had on average expected first-half revenues of $7.2bn and pre-tax profits of $1.8bn.

Bill Winters, chief executive, said:
We have had an encouraging start to 2017, making steady progress against our strategic objectives…we are stronger, leaner and becoming more efficient. We go into the second half of the year confident in our resilience and in our ability to generate better value for our clients and shareholders.

Profits attributable to ordinary shareholders were $971m, up from $465m in the same period of last year. That meant the bank’s return on equity rose from 2.1 per cent to 4.5 per cent – below its long-term target of 10 per cent.

Shares in the London-listed bank, which have gained 40 per cent in the past year but still lag rivals such as HSBC, fell 4 per cent to 813.8p shortly after the results were published on Wednesday morning.

StanChart suffered a tough few years after being fined by US regulators for sanctions breaches in 2012 and incurring heavy losses on risky loans to some large Asian clients that turned bad.

It is rebuilding under Mr Winters, who took over as chief executive in 2015 and set about restructuring a third of its loan book, stripping out 30 per cent of its annual cost base, suspending its dividend and slashing thousands of jobs.

Deutsche Bank today reaffirms its sell investment rating on Standard Chartered PLC (LON:STAN) and cut its price target to 668p (from 674p).

I only need another 3p to breakeven. Might as well stick to the original plan and hold on for £11 now

StanChart resumes dividend payout as 2017 profit soars

Maybe of interest.

Black Rock bought 41.3m 30/08/18 (According to Sharepad)

Target prices

Date Broker New target Recomm.
12 Sep Goldman Sachs 945.00 Conviction Buy
10 Sep Societe... N/A Hold
30 Aug JP Morgan... 930.00 Overweight


Projections seem OK.

Also Large investments outside UK

DYOH

But it ain't doing me any favours.

This is turning into a problem trade for me. Good job I haven't got very many.

Trump/concerns over china/cable all going against it right now.

Not one of my better picks.

CC,

I hope you are still holding:

https://www.moneyam.com/action/news/showArticle?id=6187816


Commenting on the performance, Bill Winters, Group Chief Executive, said:

"The results for the first nine months of the year reflect our focus on significantly improving profitability, balance sheet quality, conduct and financial returns. Income growth year-on-year was slightly lower in the third quarter impacted by Africa and the Middle East and we remain alert to broader geopolitical uncertainties that have affected sentiment in some of our markets. But growth fundamentals remain solid across our markets and we are cautiously optimistic on global economic growth."

Strategic execution and outlook

· Further progress on strategic and financial priorities

o Profit up 25% driven by broad-based income growth and ongoing risk discipline

o Organic capital generation and enhanced risk management has further increased the Group's resilience

o RoE improved a further 150bps to 6.6% and RoTE a further 180bps to 7.5%

· Structural trends shaping economies in the Group's footprint remain intact, but uncertainty has increased

o The macroeconomic environment continues to be supported by solid growth fundamentals

o Escalating trade tension and other macroeconomic factors are affecting sentiment in emerging markets

o Income from Wealth Management was 8% higher on a YTD basis but in Q3 was down 5% YoY

o The Group remains cautiously optimistic on global economic growth

· Having made substantial progress executing the transformation plan laid out in 2015, the Group will announce at its FY 2018 results the areas of focus that will deliver higher returns over the next three years

Financial performance highlights

· Underlying profit before tax of $3.4bn was up $0.7bn or 25% reflecting focus on improving returns

o Statutory profit before tax also $3.4bn included restructuring and other items of $17m

· Operating income of $11.4bn grew 5% on both a reported and constant currency basis (ccy)

o All client segments grew between 5-8% with particular strength in the GCNA region up 11%

o Net interest income grew 10% and NIM increased 5bps

o Q3 income was up 4% YoY and down 1% QoQ primarily impacted by the AME region

· Operating expenses of $7.6bn were 5% higher YoY (4% ccy)

o Q3 operating expenses were up 1% YoY (flat ccy) and down 5% QoQ

o Operating expenses in H2 18 ex-UK bank levy still expected to be similar to H1 18

· Asset quality improved YoY and was stable during Q3

o Credit impairment of $408m reduced 56%

o The Group remains vigilant given geopolitical and macroeconomic uncertainties