Standard Chartered report due Wednesday

Standard Chartered will announce its first-half figures for 2014 on 6 August. The consensus is for a revenue of $9.23 billion and a net income of $2.35 billion.

Standard Chartered logo
Source: Bloomberg

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.

IGA, may distribute information/research produced by its respective foreign marketing partners 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.

This information/research prepared by IGA or IGA Group is intended for general circulation. 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 or 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. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.