Standard Chartered Posts Loss In Q4; Resumes Dividend, Buy Back – Quick Facts

Standard Chartered Plc (SCBFF.PK,STAC.L,STAN.L) reported Thursday that its fourth-quarter statutory loss before taxation was $449 million, compared to last year’s profit of $194 million.

On a per share basis, the company’s loss was 19.4 cents, wider than last year’s loss of 3.9 cents.

Underlying loss before taxation was $192 million, compared to a profit of $325 million. Underlying loss per share was 13.5 cents, compared to a loss of 0.4 cents a year ago.

Net interest income declined 7 percent to $1.76 billion from $1.90 billion last year. Net interest margin fell to 1.24 percent from 1.54 percent last year.

Underlying operating income was $3.20 billion, down from $3.60 billion last year.

Standard Chartered Board said it will restart dividend and recommending the payment of a full-year ordinary dividend of $284 million or 9 cents per share.

The Board has also decided to carry out a share buy-back for up to a maximum consideration of $254 million to further reduce the number of ordinary shares in issue by cancelling the repurchased shares.

The company specified that the terms of the buy-back will be announced and the programme will start shortly and is expected to reduce the Group’s CET1 ratio in the first quarter of 2021 by approximately 10 basis points.

Looking ahead, the company expects 2021 overall income to be similar to that achieved in 2020 at constant currency. The FY’21 net interest margin should stabilise at marginally below the 4Q’20 level of 1.24 per cent. The company expects income to return to 5 to 7 per cent growth per annum from 2022.

Further, the company said confident that to achieve its ambition to deliver a double-digit RoTE. By 2023, the company expects to deliver at least 7 per cent RoTE.

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