LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

StanChart shares slide on lack of dividend, revenue recovery

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Wed, Aug 02, 2017
03:09 pm
Reuters

Standard Chartered reported a 93 percent rise in half-year underlying pretax profit to $1.8 billion, but the bank`s shares fell as it failed to resume dividends, highlighting the scale of the challenge it faces to increase revenues.

The profits jumped partly because the bank avoided the hefty losses from its private equity business and bad loans that blighted its results in the same period a year ago.

StanChart`s underlying loan impairments of $583 million for the first half, were down from $1.1 billion in the same period a year ago. These are closely watched by investors in the Asia-focused bank, which has had a glut of bad debts in the past few years following over-exuberant lending.

"We are positioned to resume growth, and we have shown early encouraging signs we can do that," Chief Executive Bill Winters told reporters on a conference call.

The bank said it would not resume paying dividends, as some investors had hoped for following its stronger profits and capital position. StanChart said it would revisit the issue at the end of the year.

Standard Chartered shares fell as much as 5 percent in London by 0915 GMT following the results announcement.REVENUE CHALLENGE

Having slashed costs and stamped out riskier behaviour at the bank, Winters` biggest problem now is growing revenues to boost profits.

In the two years since he took up his job at StanChart, former JPMorgan banker Winters has announced over 15,000 job cuts, raised more than $5 billion in capital and overhauled how the bank makes loan decisions in an effort to make it sturdier.

StanChart delivered an underlying return on equity of just 0.3 percent in 2016, far below even the 8 percent target that it last year abandoned in a sign of the challenges it faces to grow income.

Low global interest rates, lost income from axed businesses and rising competition from regional players in its main markets have combined to temper hopes of an income recovery at the bank.

StanChart rival HSBC on Monday reported rising profits and the return of a further $2 billion to shareholders via a stock buy-back, in a sign that StanChart`s bigger rival is much further ahead in its turnaround plan.

HSBC has paid out around $10 billion a year in dividends in the last four years, while StanChart cut payouts since November 2015 to focus on restructuring.

The bank said its core capital ratio, a key measure of financial strength, rose to 13.8 percent at the end of June on improving profits.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:

LATEST NEWS

Realme C20 to go on sale from today; check price, camera, specifications and much more

CBSE Board exam 2021: After Maharashtra, UP boards, will CBSE CANCEL examinations? Here is latest news by official

Madhya Pradesh Board Exam News 2021: MPBE Class 10 class 12 board exams postponed - check revised date sheet, all other details here

7th Pay Commission: Salary of Rs 67,700-Rs 2,08,700! These teaching jobs pay massive amounts, check now

CBSE Board Exams 2021 – Students just cannot afford to miss what happened in this official meeting as calls to cancel exams get louder

Infosys share price: Expert says buy for a target of Rs 1710

Yes Bank Share price can multiply 2x to 3x over this period, says expert

Stock market holidays April 2021: BSE, NSE to remain closed tomorrow, next holiday on THIS day

CBSE Board Exam 2021: Cancel exams? 'CANCEL CBSE EXAMS', says Arvind Kejriwal - latest news and updates here

Gold Price today 13-04-2021: Expert reveals target of Rs 46,350; Rs 50,000-mark eyed

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved