Standard Chartered

Ticker STAN

Today's data summary

Market closed
% change
+1.39%
Price Pence
684.60
Change
+9.40
As of 07:46 27 May 2019
Market cap. Pound sterling
22,528.40 million
As of 07:46 27 May 2019

Latest updates

Standard Chartered leads winners on FTSE

Standard Chartered
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Trading has just got under way on the London Stock Exchange and the FTSE 100 index has made a quiet start to the day, up just 0.3% to 7,442.62.

Whitbread is down 2.33%, after posting an almost 40% drop in pre-tax profits, following its sale of Costa Coffee.

Shares in Standard Chartered are up sharply, rising by almost 4.5%, after it announced a share buyback.

The FTSE 250 index has dropped marginally, by 0.14% to 19,882.90.

Standard Chartered plans $1bn share buyback

Standard Chartered
AFP

Standard Chartered has reported a 10% rise in first quarter profit and unveiled plans for a share buyback of up to $1bn (£773m).

The bank, which focuses on Asia, Africa and the Middle East, said profits rose to $1.38bn in the quarter, up from $1.26bn a year earlier.

"We will maintain our strategic investment programme and start to buy back $1 billion of our shares, reflecting our confidence in our ability to execute the strategy and create long-term shareholder value," said chief executive Bill Winters.

Earlier this month, Standard Chartered paid $1.1bn (£843m) as a penalty for violating US sanctions against Iran and over inadequate financial crime controls.

Another bank facing pension row?

Standard Chartered logo
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Pensions for boardroom executives have been in focus of late at banking groups HSBC and Lloyds Banking Group.

As we mentioned earlier, the Times is reporting that Standard Chartered is also facing concerns from investors about the pension arrangements for its chief executive Bill Winters.

Mirza Berg, global head of governance at Aviva Investors, says pension will be a "hot button topic topic" at this year's annual general meeting season.

Standard Chartered is quoted as saying that the pensions policy had been drawn up in consultation with shareholders.

Standard Chartered profits surge

Standard Chartered
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Standard Chartered's pre-tax profit surged to $3.9bn (£3bn) in 2018, the bank said in a Tuesday filing in Hong Kong, up 27% on the previous year's result.

Last week the bank said it had put aside $900m to deal with regulatory probes in the UK and US. It was the first time it had put a figure on the penalties and an attempt to draw a line under the issue.

It means its latest profit figure drops to $2.5bn "after provision for regulatory matters and restructuring and other items" are taken out, a rise of 5.5% on 2017's results.

Do fines matter?

standard chartered logo
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Do fines on banks make difference?

Standard Chartered has said overnight that it is setting aside $900m for fines while UBS was yesterday fined €3.7bn in a tax fraud case (which it is contesting).

Ritu Vohora, investment director at M&G, told BBC Radio 4's Today Programme that one of the issues these raised was "we still need better regulation".

"The question here is ... do these fines really change the cost of doing business for these banks and if it's not significant enough it's business as usual for them," she said.

Standard Chartered penalities

standard chartered branch
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Standard Chartered is putting aside $900m (£690m) to cover fines from financial regulators.

The bank, which is listed in London but conducts most of its business outside the UK, said the sum was to cover investigations into breaches of US sanctions, foreign exchange trading and a £102.2m fine from the UK's Financial Conduct Authority.

The FCA fine related to financial historical financial crime controls and the bank said it was considering its options.

In October when it published its third quarter results it had warned of the possibility of "a substantial financial impact" from ongoing investigations by the US and UK regulators.

It has warned about these investigations on a number of occasions and says "concluding these historical matters ... remains a focus of the group".

Its full year results are due on Tuesday.

Davos: China in focus

Microsoft chief executive Satya Nadella
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This morning at the World Economic Forum in Davos, China is under the microscope.

Daniel Zhang, chief executive of Alibaba, is taking part in a session looking at consumption and transformation of digital retail in China and the rest of the world.

China remains front and centre in a discussion about whether the country will be shaping the next phase of globalisation. Bill Winters, chief executive at Standard Chartered Bank, will be part of that panel.

And just as Microsoft's Bing search engine stops working in China, chief executive Satya Nadella will helm a conversation about "Digital Trust and Transformation".

Bank of England Governor Mark Carney
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Meanwhile this afternoon, Bank of England Governor Mark Carney will be talking about "Resetting Financial Governance" since the financial crisis while Barclays chief executive Jes Staley will hold a session on "Europe after Brexit".

Monitoring of Standard Chartered to end

Standard Chartered
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US regulators will stop monitoring Standard Chartered next month, bringing to an end one strand of the bank’s punishment for past compliance failings.

The bank agreed to the supervision with New York regulators in 2012 as part of a wider settlement in relation to its dealings with Iran-related entities.

However, Standard Chartered still faces a separate investigation by US authorities into the extent to which it allowed clients with Iranian interests to conduct transactions after 2007, as well as the extent to which it shared such dealings with authorities at the time of the 2012 settlement.

Reports in October said the bank could face a further $1.5bn fine for those violations, in addition to the $667m it paid in 2012 to settle alleged breaches between 2001 and 2007.