StanChart profit up 82% but no dividend
Standard Chartered reported an 82% jump in first-half profit on Wednesday but shares in the bank slumped, with analysts pointing to potential disappointment that the dividend was not reinstated early.
Banks
4,701.57
11:15 20/11/24
FTSE 100
8,102.53
11:15 20/11/24
FTSE 350
4,469.72
11:15 20/11/24
FTSE All-Share
4,427.06
11:15 20/11/24
Standard Chartered
954.00p
11:15 20/11/24
In the six months to the end of June, statutory pre-tax profit rose to $1.8bn, while operating income was up 3% at $7.2bn. Meanwhile, loan impairments fell to $655m from $1.5bn in the second half of 2016.
Profit attributable to ordinary shareholders rose to $971m from $465m in the first half of last year.
No interim ordinary share dividend was declared and StanChart said it will review the situation at the end of the year. The bank said that while it is encouraged by the increase in profitability in the first half, it is mindful that more clarity may emerge over the coming months regarding current regulatory uncertainties, including the capital implications of the finalisation of Basel III and the implementation of IFRS 9.
Chief executive Bill Winters said: "We have had an encouraging start to 2017, making steady progress against our strategic objectives. Our increased profitability and improved asset quality over the last year reflect the success of this approach: we are stronger, leaner and becoming more efficient.
“We go into the second half of the year confident in our resilience and in our ability to generate better value for our clients and shareholders."
At 1025 BST, the shares were down 4.6% to 807.30p.