Standard Chartered (LON:STAN) has agreed to an extension of its deferred prosecution agreement (DPA) with the US until the end of December, the company has said. The news comes ahead of the Asia-focused lender’s results tomorrow.
Standard Chartered’s share price has slipped into the red in London this morning, having given up 0.40 percent to 699.90p as of 08:51 BST. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.28 percent lower at 7,679.92 points.
StanChart announced in a short statement on Friday that it had agreed to a further extension of its US DPA until December 31. 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.
The lender explained that while the agreement acknowledged that the group had ‘made significant progress’ toward compliance with the agreement’s requirements, the programme had “not yet reached the standard required by the DPA”.
“The agreement also indicates that the group continues to co-operate with an ongoing US sanctions-related investigation, but that additional time is needed,” StanChart pointed out.
StanChart to post results
The Asia-focused lender is scheduled to update investors on its half-year performance tomorrow and Proactive Investors reports that analysts at UBS expect StanChart to report adjusted pre-tax profit of $2.4 billion, with its Common Tier 1 equity ratio at 13.9 percent.
Berenberg Bank reaffirmed the FTSE 100 lender as a ‘buy’ earlier this month, valuing the shares at 920p. According to MarketBeat, StanChart currently has a consensus ‘hold’ rating and an average price target of 772.50p.