Current Date:

Tuesday, 08 November 2016

StanChart Income Fall Worries CEO Winters and Chills Shares

 LONDON (Reuters) - Standard Chartered CEO Bill Winters branded its income and profit unacceptable on Tuesday as below-forecast

third quarter results and confirmation of a Hong Kong investigation underlined the challenges his overhaul faces.
“We now have a stronger balance sheet...but income and profit levels are not yet acceptable,” Winters said after the Asia-focused bank generated income of $3.47 billion in July to September, down 6 percent from $3.68 billion from a year ago.
Rivals more focused on the US and Europe have reaped huge trading profits and although StanChart’s third quarter underlying pretax profits were $458 million compared with a $139 million loss last year, this failed to offset investor disappointment with the fall in income.
Standard Charted “is delivering pretty close to zero growth. Not what investors expect when investing in emerging markets,” Nicholas Hyett, Equity Analyst at Hargreaves Lansdown, said.
StanChart’s shares were trading 5.6 percent lower at 1015 GMT, the worst performing stock in the benchmark FTSE 100 index, as the bank also confirmed Hong Kong’s financial regulator planned to take action against it in relation to its role as a joint sponsor of an initial public offering in 2009.
This comes days after Swiss bank UBS said Hong Kong’s Securities and Futures Commission was investigating its role in certain unnamed stock market listings.