Standard Chartered (LON:STAN) has agreed to extend its deferred prosecution agreements (DPAs) with US authorities until July next year, the Asia-focused lender has said. The bank first entered the DPAs with the US Department of Justice and the New York County District Attorney’s Office in December 2012, over having processed payments for sanctioned entities in countries including Iran, Burma, Sudan and Libya.
Standard Chartered’s share price has been steady in London this morning, having added 0.22 percent to 734.20p as of 09:24 GMT, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into negative territory and currently standing 0.18 percent lower at 7,470.65 points. The group’s shares have added more than 11 percent to their value over the past year, and are up by some 10 percent in the year-to-date.
StanChart announced in a statement this morning that it had agreed to a further extension of its US DPAs until July 28, 2018. The agreements, first inked in 2012 and extended for a further three years in December 2014, called for the appointment of an independent compliance monitor for a three-year term. The monitor was engaged on July 28, 2015, and the DPAs are not scheduled to conclude at the same time as the work of the monitor evaluating progress on the group’s sanctions compliance programme.
“The agreement acknowledges that the Group has taken a number of steps and made significant progress to comply with the requirements of the DPA and enhance its sanctions compliance programme, but that the programme has not yet reached the standard required by the DPA,” the FTSE 100 lender noted in the statement.
Analysts on StanChart
Credit Suisse, which has an ‘underperform’ rating on StanChart, lowered its price target on the shares from 620p to 610p last week, while Barclays reaffirmed the company as an ‘underweight,’ without specifying a valuation on the stock. According to MarketBeat, the Asia-focused lender currently has a consensus ‘hold’ rating and an average price target of 694.07p.
StanChart recently updated investors on its third-quarter performance, posting a rise in both profits and expenses during the reported period.