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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

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
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

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

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices 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.