Standard Chartered share price: Analysts flag increase in Q1 profits

Banking reporting season to continue next week

Standard Chartered share price: Analysts flag increase in Q1 profits

Standard Chartered (LON:STAN) is expected to post a rise in profits when it updates investors on its first-quarter performance next week. The Asia-focused lender’s results will follow this week’s updates by blue-chips peers Lloyds (LON:LLOY), Barclays (LON:BARC) and RBS (LON:RBS). HSBC Holdings (LON:HSBA) also reports next week.

Standard Chartered’s share price has jumped in London in today’s session, having added 1.43 percent to 759.50p as of 14:38 BST, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.59 percent higher at 7,465.50 points. The group’s shares have added about 2.6 percent to their value over the past year, as compared with about a three-percent rise in the Footsie.

Rise in Q1 profits expected

StanChart is scheduled to update investors on its first-quarter performance on Wednesday and Proactive Investors reports that Morgan Stanley expects adjusted profits of $1.22 billion, up from $1.02 billion in the prior-year period. Revenue meanwhile is expected to have climbed to $3.91 billion from $3.61 billion.

“We expect a profitable first quarter,” the analysts pointed out, as quoted by the newswire, while maintaining its ‘underweight’ rating on the shares, as it sees a “long road to rebuild returns to a level justifying the current share price valuation”. The broker further expects a rise in StanChart’s CET1 ratio by 20 basis points to 14.75.

“We expect outlook will focus on growth opportunities in Asia, the impact of rising rates, and capital return,” Morgan Stanley said.

Analysts on StanChart

Goldman Sachs reiterated its ‘conviction-buy’ rating on the Asia-focused lender earlier this month, without specifying a price target on the shares. According to MarketBeat, StanChart currently has a consensus ‘hold’ rating and an average price target of 769.42p.

As of 15:03 BST, Friday, 27 April, Standard Chartered PLC share price is 761.70p.

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