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Standard Chartered is trading at £12.33. The share price is a touch lower since March, when the bank announced a 17% drop in full-year profits for 2013. This was the first time in a decade that the company reported a fall in annual profits.
Standard Chartered is very emerging-markets focused, generating 90% of its profits from Asia, Africa and the Middle East. In late June, the share price took a knock when the bank stated that first-half profits would decline by 20% with an increase in bad loans and a drop in trading revenues to blame.
There was some speculation at the beginning of the year that Australia & New Zealand Banking Group might be interested in taking over Standard Chartered, but nothing materialised. Poor figures on Wednesday might put pressure on the share price and make it a more attractive target.
Equity analysts are bullish on Standard Chartered. Out of 42 reports, 19 are buy ratings, 15 are hold and eight are sell. Traders have factored in the drop in profits, and the stock has pulled back most of the ground lost since the profit warning in June. Good results could drive the stock to £13.14, with £11.80 acting as support.