We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Standard Chartered - Turnaround sputtering

Standard Chartered shares are down over 6% this morning after the bank announced underlying profits before tax of $458m, although substantial restructuring charges reduced this to $153m at the reported level.

Nicholas Hyett, Equity Analyst at Hargreaves Lansdown:

"The Standard Chartered turnaround story seems to be struggling.

Costs and loan impairments are both falling, while the liquidation portfolio, essentially the bad bank, is being rapidly wound down. That’s all good news, but unfortunately it’s not being accompanied by a stronger performance in the remaining ‘core’ businesses.

Income was flat quarter on quarter, and the group has warned of tough market conditions ahead. Not so long ago the bank was targeting a return on equity of 8% in 2018 and 10% by 2020 – there’s no sign of those targets now.

Standard Charted is certainly in a healthier position than it was a year ago, but it’s also smaller, and is delivering pretty close to zero growth. Not what investors expect when investing in emerging markets."

NOTES TO EDITORS

Globelynx and ISDN ready

Hargreaves Lansdown is equipped with a live in-house broadcast camera via the Globelynx network and has an ISDN line available for radio interviews - 0117 934 9006. To arrange an interview with a Hargreaves Lansdown spokesperson please contact the person you wish to speak to directly using the contact details above, or call Globelynx on 0207 963 7060 or email globelynx@globelynx.com.