Standard Chartered 2888

[winston]

StanChart writes down US$253m, turmoil not over
Benjamin Scent
Thursday, May 08, 2008

Standard Chartered (2888) announced yesterday it is writing down US$253 million (HK$1.97 billion) on credit- related assets, and chairman Mervyn Davies warned the subprime turmoil is not yet over.

"We will continue to see volatility in these markets," he said, referring to the United States and Britain.

"I do not believe the crisis is over," Davies said.

The bank is taking a US$97 million writedown because of impairments and widening credit spreads in its asset-backed securitization portfolio, it said in a trading update posted to the London stock exchange following its annual general meeting.

A charge to the available-for-sale reserve of US$156 million was also taken in the first quarter of 2008. Davies noted while the West is preoccupied with the credit crunch, many markets where Standard Chartered operates are worried about inflation.

"Many countries are tightening policy, and we should not be surprised if there is slower growth, albeit still greater than in the West," he said.

Meanwhile, the London-based lender said its consumer banking division achieved double-digit growth in income during the first quarter, despite some pressure on liability income.

The bank plans to add 10,000 to 12,000 new staff this year, Reuters quoted finance director Richard Meddings as saying.

Meddings added that the fallout from the recent market turmoil could present acquisition opportunities.

[winston]

Standard Chartered shares lower in Hong Kong after writedowns

HONG KONG (Thomson Financial) - Hong Kong-listed shares in Standard Chartered Plc (Stanchart) fell after the U.K.-based bank reported further writedowns on its asset-backed securities portfolio.

Shares in Stanchart, which has a strong presence in emerging markets, slipped 3 percent to HK$278.40.

"People are not really convinced about the results despite a relatively good set of numbers. The writedowns still worry investors," said Conita Hung, research head at Delta Asia Securities.

StanChart said it has had a good first quarter with strong momentum across its key businesses, with writedowns of $97 million on its asset backed securities portfolio.

The turbulent financial markets will also result in a $156 million charge to the available-for-sale reserve, it said. The $97 million charge to profit resulted from a "combination of impairment and widening credit spreads". But the bank said it remains sheltered from the bulk of the turmoil with minimal writedowns compared to some of its U.K.-listed peers.

Goldman Sachs said the results were "reassuring," considering the bank's resilience on the earnings front amid turmoil in the financial markets.

"How much this moves the needle on 2008 estimates, and sparks further share price upside near-term, is more open to debate, with the shares up 30 percent from the mid-January lows," said Roy Ramos, analyst with Goldman.

Goldman has a "neutral" call on Stanchart.

[winston]

Copied from another thread. From kennynah:-

small change for Std Chart
*********

07 May 2008 11:37 GMT
Standard Chartered says good start to year; writes down $97 million
LONDON (Thomson Financial) - Standard Chartered Plc. said that it has had a good first quarter with strong momentum across its businesses, but it is writing down $97 million on its asset backed securities portfolio.

The emerging markets bank said the group is well capitalised and has a strong liquidity position, in a trading update Wednesday.

The bank said its consumer unit saw double digit growth in income with wholesale banking enjoying a strong start to the year on growth in client income.

The turbulent financial markets will also result in a $156 million charge to the available-for-sale reserve it added.

[winston]

Copied from another thread. From kennynah:-

07 May 2008 12:02 GMT
Standard Chartered 1Q Good But Charges $253 Million
By Ragnhild Kjetland Of DOW JONES NEWSWIRES

LONDON -(Dow Jones)- Standard Chartered PLC (STAN.LN) made a good start to the year but saw charges on its asset-backed securitization portfolio due to impairments and widening credit spreads, Chief Executive Peter Sands said Wednesday.

Sands said trading conditions have "held up well" in the first quarter, but nevertheless, the bank made a charge of $97 million that directly hit profit. The bank took an additional charge on its available-for-sale assets of $156 million in the first quarter. The latter only affects shareholder equity and won't be seen in the bottom line.

"Overall, we have made a very good start to the year and continue to have good momentum although there remains considerable volatility in financial markets and many potential challenges in the external environment," Sands said, according to a statement to be given at its shareholder meeting Wednesday.

The CEO also noted that the group has a "strong liquidity position" and it is well capitalized with "consistent access to debt capital markets." Since the beginning of the year, he said, Standard Chartered has issued around $4 billion of senior and subordinated debt.

In the first quarter, Sands said consumer banking achieved double-digit income growth, despite some pressure on liability income given the interest rate environment. He said that asset quality remains good, albeit with continued challenges in Pakistan and Thailand.

In wholesale banking, disregarding the charges made on the ABS portfolio, there was accelerated growth in client income and the asset quality in the corporate loan book showed no material deterioration, "although we remain extremely vigilant given the external environment."

Standard Chartered has come through the credit market turmoil relatively unscathed as it generates over 90% of its profit outside the U.K. and largely in emerging markets.

Last year, Standard Chartered's profit came from Asia, the Middle East and Africa, offsetting a $315 million pretax loss from the Americas, U.K. and Europe operations.

On Wednesday, Chairman Mervyn Davies noted that while the focus in the western world is on the credit crunch, "it is inflation that is worrying many of our markets."

"Many countries are tightening policy and we should not be surprised if there is slower growth, albeit still greater than in the West," Davies said.

At 1137 GMT, Standard Chartered shares were down 20 pence or 1% at 1,864 pence.

The stock has had stellar performance over the last year, gaining nearly 18%. All other U.K. bank shares have shed between 7%, HSBC Holding PLC (HBC), and 62%, Bradford & Bingley PLC (BB.LN).

[winston]

Small position to follow story. I like their long term story in the emerging markets as well as the potential "fight" between Dubai and Temasek..

===========================================

StanChart takes US$292m hit on ABS portfolio
KarenWong

Friday, June 27, 2008

Emerging-markets lender Standard Chartered (2888) said it will write down US$292 million (HK$2.28 billion) on its asset-backed securities portfolio, resulting in a US$108 million charge to be booked in the first half.

The London-based bank said yesterday it sees uncertainty in the economic environment but the quality of the wholesale-banking loan book remains good.

"The economic horizon is increasingly uncertain," said finance director Richard Meddings. "We see a strong performance for the wholesale banks, with the exception of the impact of AEB [American Express Bank]."

Apart from the United States and the UK, Meddings said, "we are seeing strong income growth all across geographies - particularly in Singapore, India and Africa have showed good performance."

"We see a strong double-digit revenue growth in China. Consumer banking is growing," said Meddings. The bank hopes to have 60 branches and sub-branches in China by the end of this year, a 60 percent increase from 38 outlets last year.

Meanwhile, consumer banking in Hong Kong has generated double-digit income growth, but at much lower levels than last year.

The bank reported that new impairments in the wholesale banking loan book are increasing, and recoveries are at lower levels than in 2007.

With emerging markets bringing in more than 90 percent of the bank's profit, Meddings said: "We are not going to be complacent ... we continue to keep costs and credit risk under tight control."

Standard Chartered shares were down 6.3 percent in London trading after the announcement.

[winston]

Earnings Announcement Aug 6

[winston]

Not vested anymore.

Standard Chartered earnings jump 31pc

Standard Chartered (2888), the UK bank that earns most of its money in Asia, said first-half profit climbed 31 percent, helped by corporate lending in India and Hong Kong.

Net income rose to US$1.79 billion, (HK$13.96 billion) or US$1.25 a share, in the six months ended June 30, from US$1.37 billion, or 97.1 US cents, a year earlier, the London-based company said today in a statement. That beat the US$1.68 billion average estimate of eight analysts surveyed by Bloomberg.

Standard Chartered is the first London-based bank to report higher first-half earnings.

Its profit increase follows the US$860 million acquisition in March of American Express Bank to gain banking licenses in India and Taiwan and add wealthy customers.

BLOOMBERG

[winston]

Not vested.

StanChart net surges on wholesale growth
BenjaminScent
Wednesday, August 06, 2008

Standard Chartered (2888) reported first-half net profit jumped 30 percent to US$1.79 billion (HK$13.96 billion), beating analyst expectations, on strong growth in wholesale banking and an 89 percent jump in pretax profit from India.

"I'm optimistic Asia will be able to cope with the slowdown in the United States," group chairman Mervyn Davies said. "Despite inflation, those economies are going to continue powering ahead."

The London-based bank, which earns three-quarters of its profit in Asia, reported net interest income rose 26 percent to US$3.71 billion, while net interest margin remained flat at 2.5 percent. Net fee income jumped 37 percent to US$1.68 billion.

Operating profit in the wholesale banking division surged 38 percent to US$1.65 billion, with Hong Kong wholesale banking operating profit rising 48 percent to US$343 million.

"We are clearly seeing the opportunity to capture market share," said chief executive for Asia, Jaspal Bindra.

Consumer banking operating profit rose 2 percent to US$802 million. The company declared an interim dividend of 25.67 US cents per share, up 11 percent.

Local subsidiary Standard Chartered Bank (Hong Kong) reported net profit rose 18 percent to HK$4.1 billion after total operating income rose 20 percent to HK$8.98 billion.

[winston]

Not vested.

Analysts fear StanChart growth not sustainable
Benjamin Scent
Thursday, August 07, 2008

London-based Morgan Stanley and Goldman Sachs analysts slashed their target prices for Standard Chartered (2888) yesterday on fears the Asia- focused lender may not be able to continue its strong growth.

Standard Chartered first-half net profit surged 30 percent to US$1.79 billion (HK$13.96 billion) despite a difficult market environment.

However, the bank's core Tier 1 capital ratio, a measure of financial strength, fell to 6.1 percent on a Basel II international banking standard basis, down from 6.6 percent at the end of 2007. This prompted Morgan Stanley analysts' concern that the bank may have to raise more equity capital. "There will be question marks as to how they can keep financing double- digit asset growth with just 6 percent core Tier 1," the Morgan Stanley analysts wrote. "Yes, they don't have the toxic assets of other EU banks but we know precious few, if any, Asia banks on just 6 percent core Tier 1."

Morgan Stanley downgraded Standard Chartered's London-listed shares to "equalweight" from "overweight" and cut the target price by 21 percent to 1,520 pence (HK$233.71).

Goldman Sachs cut its target price for Standard Chartered's London-listed shares by 2.8 percent to 1,740 pence. It also cut its 2008, 2009 and 2010 earnings estimates. "While the results were strong, we have concerns regarding the mix and sustainability of group income growth," Goldman Sachs analyst James Chappell said.

[KimHuat]

Hi all,
Got profit, scare cannot sustained! Lost money, got downgraded! What type of analysis, Ha!Ha!Ha!