Standard Chartered Share Discussion Threads

[qantas] 02/11/2021 16:44

Analysts at ShoreCap reiterated their 'buy' recommendation for shares of StanChart, telling clients that it remained the most undervalued lender in its UK banking universe.

ShoreCap said while StanChart, which also "modestly" raised its guidance, conceded that the recovery from Covid-19 remained uneven and punctuated by supply-chain disruptions, the group's management also highlighted that it was encouraged by "robust levels of export growth" across many of its markets in Asia.

The bank also said that the group's guidance for 5.0% to 7.0% income growth from financial year 2022 assumed just 30 basis points of interest rate increases from 2021-25.

"Although the results themselves are unlikely to set pulses racing, at 0.5x [tangible net asset value] the shares continue to look very good value versus longer-term RoTE targets, in our view."

[mo123] 02/11/2021 10:00

Stan has a fair bit of exposure to China’s real estate sector creating short term uncertainty. Watch how Evergrande et al fair over next month or two.

[dagoberia] 02/11/2021 09:54

I think i need to quit investing LoL. How can anyone read the results and then think " ok this needs to drop 10%". I understand predicted growth is not what was hoped for (short term), but 10% drop?

[coxsmn] 02/11/2021 09:42

This will bounce as drop is unfounded.

[peeks007] 02/11/2021 09:19

Wow. 8% drop for a great set of numbers. Once the shorters are done, this should be marching up towards 700p.

[coxsmn] 02/11/2021 08:34

Strong results.Nothing to worry about there.

[pdriccio] 30/10/2021 22:15

Read this today, hopefully they hit their targets which could result in a massive rerate Temple Bar: The opportunities and myths in UK equities. 18 Oct 2021Standard Chartered over-soldI'll probably just spend two seconds talking about the banks, as well. The banks, if I pick on Standard Chartered (STAN). Standard Chartered is an interesting example. It's an Asian focused bank. It's a good example of a company which has effectively, been penalised because it's in the UK and investors have been selling down the UK. Standard Chartered trades on around half times book value. Half times book value, it's got a target to make a 10% return on equity and that assumes, by the way, that interest rates remain at current levels. Again, you can do the maths. If you're on half times book and you make a 10% return on equity, that means you're on a PE of five. So that's an earnings yield of around 20%. So supremely attractive valuation. Again, a good example. You look at the banks overseas, because they don't suffer from the UK effect, if that's the way you want to think about it, their priced at book value and in the case of the US banks, actually, a premium to book value. So again, companies with perfectly reasonable prospects being unduly penalised because they happen to be listed in the UK and leaving very attractive returns on the table for people who are prepared to take a contrarian mindset. Obviously, we'll go into questions, but I think that's probably it from us. 

[qantas] 25/10/2021 11:05

HSBC nudged up after it reported bumper third-quarter profits that smashed expectations and unveiled plans for a share buyback of up to $2bn. The bank's reported pre-tax profit for the third quarter jumped 75.8% year on year to $5.4 billion, well beyond the $3.776bn forecast by analysts in estimates compiled by the bank. Revenue rose 0.7% to $12bn, compared with an expected 3.1% rise.

HSBC also released around $700m in Covid-19 bad debt provision.

[coxsmn] 24/9/2021 17:18

https://www.telegraph.co.uk/business/2021/09/23/interest-rates-set-rise-soon-february-amid-inflation-surge/

[mo123] 24/9/2021 17:14

Short term, still wary about contagion in the region but its certainly a +ve step as he has inside information re the situation.

On the other hand:

HSBC and StanChart make a big chunk of their profits in China and Hong Kong and they have been the banks most involved in underwriting syndicated loans for developers there. That means they are likely to face the most immediate second-order impacts, said analysts at JPMorgan.

Will wait a bit longer to see how the story unfolds.

[qantas] 24/9/2021 15:53

Mo good news deputy chairman buying show confidence in the stock.

[mo123] 24/9/2021 09:28

Only trading this one at the moment Qantas. Sold all yesterday, mainly due to the risks associated with the domino effect . Bonds from other developers inc. R&F and Sinic have been sold off recently.

[qantas] 22/9/2021 12:17

well done mo

[mo123] 22/9/2021 09:32

Bought a few of these this morning after China's central bank injected 90 billion yuan ($14 billion) into the banking system. Shows that they want to be supportive and are willing to step in if req.

[mo123] 20/9/2021 11:09

Contagion spreading as New World Development in HK took a bit of a pasting. Question is, how much do banks still have invested in the real estate sector or have they sold off most of their equity/bond holdings?
Ping An, Chinas biggest insurer also took a sizeable hit.

[mo123] 16/9/2021 10:14

Hi Qantas, I was principally concerned about contagion and systemic risk where we don't know the exposure of any bank. Ie in the bond and credit derivatives market. That's why I'm waiting for a fuller picture to emerge.

[qantas] 10/9/2021 10:11

Mo

These are Evergrade Bankers.



Please do your own research as always.

[mo123] 09/9/2021 10:28

It may be minimal but having read that the bank has some exposure to Evergrande, will wait for a lower share price or until full facts are known.

[qantas] 07/9/2021 16:55

Analysts at Berenberg reiterated their 'buy' stance on shares of StanChart, telling clients that low global interests were masking volume growth and hence the shares had become undervalued.

The low interest rate environment had contributed to a 6% year-on-year decline in StanChart's revenues over the front half of 2021, despite positive volume growth of about 5.0%.

In parallel, StanChart's costs had been broadly flat and Berenberg expected the lender's continued investments would support low cost inflation.

Indeed, "with these affects having now fed through, Standard Chartered is experiencing net interest margin stability that we expect to continue - with scope for expansion as liquidity is optimised (particularly if yields rise)," the analysts added.

The analysts estimated that the lender could now grow its revenues by 9.0% over the back half of 2021 and by 5.0-6.0% beyond that.

Furthermore, with a common equity tier one ratio of 14.1% - above management's 13.0-14.0% target range - and a capital-light business model, Berenberg said StanChart could continue to support "attractive" capital returns of approximately 8.0% annually.

Berenberg also kept its target price for StanChart's shares at 630.0p, which valued the lender at 0.7 times its tangible book value, against the 0.5 times TBV they were changing hands on now.

Please do your own research as always.