The company will announce its full-year figures on 23 February, and traders are expecting revenue of $15.92 billion and adjusted net income of $942 million. These forecasts equate to 12.6% decline in revenue and 76% drop in adjusted net income. The bank will also reveal its second-half results on the same date, and investors are anticipating revenue of $7.17 billion and adjusted net loss of $620 million, which compares with the first-half revenue of $8.49 billion and adjusted net income of $1.28 billion.
The bank has been hit hard by the economic slowdown in emerging markets, where it derives the majority of its revenue. Standard Chartered was a major benefactor from the boom times in China and India, and now the bank is struggling as bad debts are on the rise. The London-listed company announced major restructuring in the last quarter of 2015, and that included abandoning its second-half dividend, large scale job cuts and a £3.4 billion rights issue. The poor performance in the Bank of England’s (BoE) stress in December highlights Standard Chartered’s problems, but the funds raised from the rights issue beefed up the balance sheet. Standard Chartered’s over-dependence on the emerging markets is now working against the bank and will continue to do so until we see a levelling off, of its rate of economic decline.