Standard Chartered Share Discussion Threads

[smurfy2001] 12/3/2014 11:03

Support smashed.

Seems like all banks being sold down.

[miata] 12/3/2014 08:55

Is this bank broken? Possibly, but probably just damaged.

[malcontent] 12/3/2014 08:38

bought today

solid and longlasting chart support at 1200 with a couple of spikes down to 1100

Is this bank broken?
If not, it's a buy at these levels

will add if we get down to 1100 :)

[keith95] 06/3/2014 12:21

with a 4% return and dividend cover of 2 ... I'll bet on the CEO doing his job rather than a journo repeating what he has been bought to say at a liquid lunch ...

[kiwi2007] 06/3/2014 09:52

How do you solve a problem like Korea?

[keith95] 06/3/2014 08:44

Back in :)

[cantrememberthis2] 06/3/2014 08:12

topped up £12.23, ex divi soon...

[smurfy2001] 05/3/2014 15:06

Well clearly someone has and this is being sold down.

[libertine] 05/3/2014 14:51

It would help if you actually read the report instead of spouting absolute drivel.

[smurfy2001] 05/3/2014 13:54

How many times will this bank raise capital? I've lost count since the recession.

This is a strong sell.

The alarm bells have clearly been rung.

Will there be a dividend cut, because there needs to be by the sounds of it?

[miata] 05/3/2014 13:48

"Critics have feared the bank will need to raise capital, and thus dilute shareholders, to meet upcoming regulatory requirements. The latest results allayed these fears for now by reporting the core tier-1 capital ratio rose to 11.8% from 11.4% six months prior. These figures are based on the soon-to-be-obsolete Basel II standards. But even on the incoming Basel III framework, the bank estimates its "fully loaded" core tier-1 capital ratio to be a respectable 11.2%. The planned sale of some small business units could boost the ratio by another 10 to 15 basis points."

[kiwi2007] 05/3/2014 13:00

Apparently bad news on the conf call regarding a S Korea purchase.

Anyway tons of broker comment on

1st Broker:

Relief rally over the coming weeks

With a c10.5% B3 CET1 ratio as a starting point taking into account PRA actions and foreseeable dividends, we can see STAN getting to 12% B3 CET1 by 2016. With a number of asset exits intended according to the company, this could be comfortably above 12%, and close to 13% if management and regulators so wish. We believe STAN has materially addressed capital concerns here, though earnings risks still remain on the name.

Key points from the results

§ 2H revenues were slightly below our estimate of USD 9,127m at USD 9,026m.

§ Within Financial Markets, there was a 27% drop in income h-o-h, largely said to be driven by 4Q developments. FX and Rates were particularly weak in 2H, down 31% and 34% respectively, versus 1H.

§ Cost control was stronger at USD 5,159m vs our estimate of USD 5,266m.

§ Impairment provisions rose USD 169m in 2H. Impairments rose in Korea as expected and India was slightly better than expected. Africa had the surprise increase in provisions, rising to USD 195m from USD 75m in 1H.

§ Other impairment of USD 129m fell y-o-y, reflecting lower write-downs of Private Equity investments.


2nd.

§ Outlook: underlying drivers of long-term economic growth in the company's markets remain strong. China GDP growth is expected to remain at around the 7% market. H114 may prove challenging in terms of income and profit, continuing on from a difficult Q413. Expect modest growth overall in 2014 with market and trading conditions likely to remain volatile.

3rd broker.

Outlook statement downgrades growth expectation. As we expected, STAN is cautious on 2014 and guides to "modest growth". Expects H1 to be challenged despite a reasonable start to year relative to H2 13.

1.3x price/tbv with consensus estimates likely to drift down on the back of these numbers. H2 results illustrate the need to preserve capital versus grow a capital intensive business. We do not regard risk/reward to be favourable and continue to rate STAN at Underperform with an £11 price target.

Take yer pick but looks like those shoring will be hoping to chase it down to 10.98 GBPounds.

OK long term though I think.

[keith95] 05/3/2014 11:53

bailed so hopefully back in at -5% :)

[kiwi2007] 04/3/2014 22:18

And a link to the conf call at 10 a.m your time in the UK:

[kiwi2007] 04/3/2014 22:16

LONDON- Standard Chartered STAN.LN +1.80% PLC is nearing deals to sell roughly a half-dozen units in Europe, Asia and the Middle East, as part of an effort to combat an emerging-markets slowdown and worries about the bank's financial health, according to people familiar with the deals.

Standard Chartered is in advanced talks to sell Standard Chartered Savings Bank and Standard Chartered Capital in South Korea, according to these people. The bank also is preparing to make an announcement soon about having sold its Lebanese retail bank, these people said. It isn't clear who the buyers for the South Korean or Lebanese units will be.

Other businesses on the block include Standard Chartered's Hong Kong consumer-finance outfit called PrimeCredit, its German consumer bank and its Swiss private bank, these people said.

While the bank has headquarters in London, Standard Chartered generates 90% of its profit in Asia, the Middle East and Africa.

The sales are the latest in an abrupt turn in fortunes for Standard Chartered. Until recently, the bank's emerging-markets focus helped it avoid the problems that have dogged many European banks and made it a darling of investors. But turbulence in many of Standard Chartered's markets has walloped its shares, which are down 31% over the past year due partly to concerns that the bank needs more capital to absorb potential losses. On Monday, Standard Chartered fell 1%, to £12.52 ($20.96), in London.

On Wednesday, Standard Chartered is scheduled to report its 2013 results, which will mark the first time in a decade that its annual operating profit will have increased by less than the prior year.

The businesses that Standard Chartered is selling are mostly small. The South Korean units have a combined book value of about $145 million but are expected to be sold at a discount, according to the people familiar with the deals. The Lebanese bank is valued at roughly $20 million. Standard Chartered's market capitalization, by contrast, is more than £30 billion.

"The good news is that if management [wants] to build capital by sell-downs, hidden value exists," said Jason Napier, an analyst at Deutsche Bank. DBK.XE +1.58% He calculates that Standard Chartered from 1999 to 2011 made nearly three dozen acquisitions, many of which are now valued at more than their purchase prices.

But shrinking is something new for the bank. Last November, as the bank's profits sputtered and its share price tanked, Chief Executive Peter Sands pledged to sharpen the bank's focus and stop wasting capital.

The bank also has been pruning employees; its workforce shrank to 87,000 employees from 89,000 in 2013.

Standard Chartered is "taking actions to adapt our strategy to the changing realities of the world in which we operate," Mr. Sands told analysts in January. The plan, he said, is to "deploy and concentrate our scarce resources-capital, liquidity, investment capacity, management time-behind the key geographies and businesses that offer the most potential for profitable growth."

The bank rode a wave of foreign money and cheap credit pouring into Asia, the Middle East and Africa in the previous decade, but slower economic growth, rising bad loans and higher costs of doing business all hit the bank last year. Some purchases made in brighter times have gone sour, and Standard Chartered warned in December that operating profit for the year would be less than 2012's $6.8 billion.

South Korea has been a particular headache for the bank, due at least in part to a government program allowing people to restructure debts.

The bank wrote down the value of its business there by $1 billion in the first half of last year, and in December said it expects to post a full-year operating loss in the country of as much as $200 million.

Some analysts said the bank may need to sell new stock this year to maintain its capital position, which for years was considered one of the strongest in the industry. Mr. Sands has said that won't be necessary and is betting the global economy will pick up and markets will be calmer this year.

However, Credit Suisse CSGN.VX +2.02% analysts estimate that even if profits hold steady this year, the bank's ratio of equity to assets, one measure of the bank's capital strength, will start to lag behind rivals.

[kiwi2007] 04/3/2014 22:08

Standard Chartered PLC (LON:STAN)'s stock had its "add" rating reaffirmed by equities researchers at Oriel Securities Ltd in a research report issued on Tuesday, AnalystRatingsNetwork reports. They currently have a GBX 1,675 ($28.02) price objective on the stock. Oriel Securities Ltd's price target points to a potential upside of 33.80% from the stock's previous close.

Shares of Standard Chartered PLC (LON:STAN) traded up 2.04% on Tuesday, hitting GBX 1277.50. 2,800,219 shares of the company's stock traded hands. Standard Chartered PLC has a 52-week low of GBX 1222.50 and a 52-week high of GBX 1860.50. The stock has a 50-day moving average of GBX 1292. and a 200-day moving average of GBX 1405.. The company's market cap is £30.890 billion.

A number of other firms have also recently commented on STAN. Analysts at Maybank Kim Eng reiterated a "sell" rating on shares of Standard Chartered PLC in a research note on Monday. They now have a GBX 1,256.62 ($21.02) price target on the stock.

Separately, analysts at UBS AG cut their price target on shares of Standard Chartered PLC from GBX 1,680 ($28.11) to GBX 1,515 ($25.35) in a research note on Friday. They now have a "buy" rating on the stock.

Finally, analysts at Deutsche Bank reiterated a "hold" rating on shares of Standard Chartered PLC in a research note on Wednesday, February 19th. They now have a GBX 1,410 ($23.59) price target on the stock.

Seven investment analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and fourteen have assigned a buy rating to the company. The company currently has a consensus rating of "Hold" and an average target price of GBX 1,533.46 ($25.66).

[keith95] 04/3/2014 19:47

All the other UK listed banks (that I've seen) have been sold off heavily on results ... common theme but one bank usually gets away with it ...

Maybe Stans turn this time around .. or maybe not .. so +/- 5% by tomorrow evening .. and flip a coin.

[kiwi2007] 04/3/2014 09:15

Flogging a bit of the silver?

"Standard Chartered is nearing deals to sell roughly a half-dozen units in Europe, Asia and the Middle East, as part of an effort to combat an emerging-markets slowdown and worries about the bank's financial health, according to people familiar with the deals."

[moopdoom] 02/3/2014 15:06

Dividend concerns in press yesterday.

[jarbie] 24/2/2014 23:59

Novision - thank you - jarbie

[novision] 24/2/2014 21:42

Jarbie - I think it is just a tax efficient device for India residents to participate in STAN shares and entirely voluntary. you can convert shares to IDRs and IDRs to shares. But it doesn't really matter to UK holders as far as I can make out. But DYOR etc.

This is a FAQ link on the topic.

[jonntara] 22/2/2014 22:08

Just been watching pestons programme on the coming Chinese meltdown. Interesting and thought provoking stuff. However I remember reading a book about 10 years ago when i was expat in Asia called the coming collapse of China - and it never happened. Hmmm will have to think about this some more. It's the most compelling bear case I have yet seen