StanChart upgrades forecasts, calls for $1 billion buyback as profit rises 28% | – #StanChart #upgrades #forecasts #calls #billion #buyback #profit #rises
SINGAPORE/LONDON, Feb 16 (Reuters) – Standard Chartered ( STAN.L ) lifted its benchmark on Thursday after reporting a 28% rise in annual pre-tax profit, driven by rising global interest rates and a new 1 billion introduced a dollar share buyback program. its lending income.
to StanChart’s performance as its global peers inflation Aggressive aimed at fighting with central bank a rise in interest rates helped, which in turn allowed lenders to pay more after a decade of near-zero interest rates.
First Abu Dhabi Bank ( FAB ) ( FAB.AD ) is an Asia, Africa and Middle East-based company subject to takeover speculation bank, said the latest share buyback will begin soon. Its shares rose 3.5% in Hong Kong after the revelations.
“We are raising our expectations and now in 2023 10We aim to achieve a return on equity approaching 11% in 2024 and continue to grow thereafter,” CEO Bill Winters said in a statement.
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London-headquartered StanChart previously for 2024 10% was targeted. Return on capital is the main profitability indicator for banks.
Shares in StanChart spurred renewed takeover speculation, dismissing media reports that FAB is currently considering a bid.
Still, StanChart shares are about 25% below the levels Winters ran in June 2015, while peer HSBC Holdings ( HSBA.L ) shares are flat and the benchmark FTSE index (.FTSE) is up about 15%.
Last week FAB, the largest lender in the United Arab Emirates, once a potential one offer admitting that he is working on it, he said that he does not currently evaluate the proposal for the bank.
IT IS A DIFFICULT DUTY
StanChart, which makes most of its profits in Asia, expects 2022 statutory pre-tax profit of 4.3 billion dollars stated that he organized This is an average of 4.73 of analyst forecasts compiled by the bank billion dollars was lower than the level, but exceeded the 3.35 billion dollars achieved in 2021.
On Wednesday, Barclays ( BARC.L ) reported a 14% drop in full-year pre-tax profit as earnings took a nosedive due to rising costs and a collapse in deal fees, among other factors. HSBC publishes the results next week.
While StanChart’s results are better than some competitors, mixed performance in key business areas is a big one Europe highlighted the work Winters, the bank’s longest-serving leader, has yet to do.
StanChart’s financial markets trading business reported record revenue up 21% in 2022 as accelerating inflation and Russia’s intervention in Ukraine led to frenzied activity by institutional clients for volatile markets.
However, the wealth management business reported a 17% drop in revenue as affluent individual clients became more risk-averse and COVID-19 restrictions limited face-to-face sales of investment products in China and other markets.
China’s economic slowdown of the bank credit 582 million for expected bad debts in the country’s troubled real estate market dollars impairment was recorded, raising the lender’s total impairment to $838 million more than expected.
StanChart also knocked $308 million from its investment in China’s Bohai Bank ( 9668.HK ), which it attributed to “industry issues.”
Reporting by Anshuman Daga and Lawrence White; Edited by Christopher Cushing
Our standards: Thomson Reuters Trust Principles.
2023-02-16 10:39:58
Source – reuters
Translation“24 HOURS”