Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

StanChart shares soar on $1bn buyback, higher profits

(Sharecast News) - Shares in Standard Chartered on Friday soared after the Asia-focused bank unveiled a new $1bn buyback, increased dividend and higher annual profits, but reined in guidance on income for the current year. The bank reported an 18% rise in pre-tax profit to $5.1bn and lifted its full-year dividend 50% to 27 cents a share, well above estimates of 23.7 cents. Shares in the lender were up more than 8% in London.

However, it also forecast income growth at the upper end of 5-7% this year, down from the previous estimate of 8-10% given last October. The lender reported a 13% rise in income in 2023 on a constant currency basis.

Looking ahead, the lender said it would aim to increase return on tangible equity from the current level of 10% to 12% by 2026.

StanChart also booked an extra $150m impairment from its stake in Chinese lender Bohai Bank in the final quarter, taking the total write-down to $850m in another example of the fragile state of the property sector in China.

Shareholders were not the only ones to benefit from the bank's performance, chief executive Bill Winters saw his pay rise 22% to £7.8m.

AJ Bell investment director Russ Mould said China "remains a thorn in the side of the business for now".

"Medium-term returns targets are ahead of where the consensus is sitting so if these can be delivered they could help lift the company's valuation. However, its focus on developing economies brings with it a level of unpredictability which may get in the way of these aspirations," he added.

Reporting by Frank Prenesti for Sharecast.com

Share this article

Related Sharecast Articles

Billionaire Issa nearing deal to sell Asda stake to TDR Capital - report
(Sharecast News) - US private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
Billionaire Issa nearing deal to sell Asda stake to TDR Capital
(Sharecast News) - Private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
DS Smith tumbles as Mondi abandons pursuit
(Sharecast News) - DS Smith tanked on Friday after Mondi said it would not be making an offer for the rival packaging group, clearing the path for a takeover by International Paper.
Eqtec agrees amendment to Verde subscription
(Sharecast News) - Waste-to-energy technology developer Eqtec updated the market on the Verde Corporation subscription on Friday, confirming that an amendment to the subscription letter had been agreed upon with Verde.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.