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Standard Chartered share price: Lender delivers better-than-expected profits

Standard Chartered (LON:STAN) has delivered a rise in profits for the third-quarter of the year, ahead of analysts’ forecasts. The Asia-focused lender, however, warned that the trade tensions between the US and China were weighing on sentiment in emerging markets.

Standard Chartered’s share price fell in the previous session, giving up 0.65 percent to close at 532.70p, underperforming the benchmark FTSE 100 index which ended trading in positive territory. The group’s shares have given up just under 30 percent of their value over the past year, as compared with about a six-percent drop in the Footsie.

StanChart posts rise in profits

StanChart announced in a statement this morning that its underlying profit before tax had grown 31 percent year-on-year to $1.1 billion. Reuters reports that the result was ahead of the $978 million average of analysts’ forecasts. The lender’s net income rose four percent year-on-year, but dipped one percent as compared with the prior-year quarter, dragged down by the group’s  Africa and the Middle East. The group’s return on equity improved 150bps to 6.6 percent during the reported period.

“The results for the first nine months of the year reflect our focus on significantly improving profitability, balance sheet quality, conduct and financial returns,” StanChart’s chief executive Bill Winters commented in the statement.

Bank points to trade tensions

The Asia-focused lender, however, noted that while the macroeconomic environment continued “to be supported by solid growth fundamentals,” the escalating trade tensions were “affecting sentiment in emerging markets”. StanChart, however, reassured investors that it remained “cautiously optimistic on global economic growth”.

The group further noted that it had made “substantial progress executing the transformation plan laid out in 2015,” and said that it would announce alongside its full-year results the areas of focus that will deliver higher returns over the next three years.

As of 07:42 GMT, Wednesday, 31 October, Standard Chartered PLC share price is 532.70p.

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