Shares in Standard Chartered (LON:STAN) have advanced in London this morning, outperforming the broader market, as the Asia-focused lender resumed paying dividends. The news came as the group updated investors on its full-year performance, posting a surge in pre-tax profits.
As of 09:40 GMT, Standard Chartered’s share price had added 0.60 percent to at 834.00p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.18 percent higher at 7,302.80 points. The group’s shares have added just under 15 percent to their value over the past year, as compared with about a 0.7-percent gain in the Footsie.
StanChart sees profits rise
StanChart announced in a statement this morning that its profit before tax had soared 175 percent to $3 billion in the year ended December 31, 2017, while its operating income had climbed three percent to $14.3 billion, despite a drag from the company’s Financial Markets business. The Asia-focused lender reported a core capital CET1 ratio of 13.6 percent, above its reiterated 12-13 percent target range.
“The transformation of the Group continued in 2017 with the significant improvement in underlying profits, a strong capital position and emerging clarity on regulatory capital requirements allowing us to resume paying dividends,” StanChart’s chief executive Bill Winters commented in the statement, adding that the company was ‘encouraged’ by its start to the current year.
Group restores dividend
StanChart said that it had resumed its payout to shareholders, proposing a full-year dividend of 11 cents per share for 2017 and unveiling plans to hike its payout over time as its performance improves.