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.

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.