Shares in Standard Chartered (LON:STAN) have lost ground in London this morning, even as the bank posted a rise in profits for the first three months of the year. The Asia-focused lender is further nearing its return target under chief executive Bill Winters, who has been looking to transform the group.
As of 09:48 BST, Standard Chartered’s share price had given up 2.38 percent to 751.00p, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.55 percent higher at 7,561.96 points. The group’s shares have added more than six percent to their value over the past year, as compared with a 4.30 percent gain in the Footsie.
StanChart posts Q1 results
The FTSE 100 lender announced in a statement this morning that its underlying profit before tax had climbed 20 percent to $1.3 billion in the three months to March 31, reflecting focus on improving returns, while statutory profit was $1.2 billion included restructuring charges of $70 million. Operating income meanwhile came in at $3.9 billion, up seven percent or five percent on a constant currency basis. The lender noted that the impact of US dollar depreciation was broadly neutral on underlying and statutory profit.
“This encouraging start to the year shows that we are firmly on the path laid out in February that will take us above an eight percent return on equity in the medium term,” StanChart’s chief executive Bill Winters commented in the statement, adding that the group was “determined to pass that milestone as soon as we can”.
Analysts weigh in on update
“The key disappointment will be that the strong income start flagged at the full year hasn’t persisted,” Richard Smith, an analyst at Keefe, Bruyette & Woods, told Bloomberg, referring to management guidance in February to expect “broad-based double-digit” growth, which failed to transpire.