CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Standard Chartered share price up 2%, Indonesian bank sale to fund share buyback

The emerging markets lender saw it share price climb higher on Tuesday morning after unveiling strong profits and plans to sell Indonesian bank stake to finance share buybacks.

Standard Chartered recorded a 28% increase in pre-tax profits of $3.86 billion in its full-year 2018 results, but despite the strong showing its performance came in below analysts’ expectations due to rising US-China trade tensions late last year.

A Bloomberg-compiled consensus of analysts’ forecasts estimated that the emerging markets bank that focuses on Asian, Africa and Middle-Eastern would end the year with profits of $3.98 billion.

‘While the year started strongly with good momentum across all businesses, client sentiment in our markets dipped later in the year, coming under pressure from geopolitical uncertainties, the rapid escalation of trade tensions between the US and China, as well as slower growth in the global economy,’ Standard Chartered Group CEO Bill Winters said.

Standard Chartered share price climbs higher after unveiling share buyback scheme

Shares in the bank increased by 2.7% to HK$64.70 on Tuesday morning, after the company said it was looking at selling its stake in an Indonesian bank to finance a share buyback scheme.

‘We have made tremendous progress securing the foundations of the business since 2015, resulting in a third successive year of underlying profit growth,’ Winters added.

‘Our refreshed priorities announced today will help realise the true value of the franchise.’

Standard Chartered: key figures

The bank saw a significant improvement in its overall profitability, driven by higher quality income growth with cost and asset origination, with the lender seeing its operating income grow 5% to $15 billion in 2018.

The lender also made good on cost-saving strategy, with the bank delivering $3.2 billion in gross cost efficiencies, exceeding the target it set back in November 2015.

Basic earnings per share increased by 14.2 cents to 61.4 cents a share, with the bank’s management recommending a final dividend of 15 cents a share, up 36% from 11 cents allocated a year prior.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

See an opportunity to trade?

Go long or short on more than 17,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.