Standard Chartered Group (02888) announced its third-quarter results. The third-quarter statutory profit before tax was US$1 billion, an increase of 129% year-on-year, which beat market expectations, while the basic profit before tax increased by 44% to US$1.1 billion. During the period, Standard Chartered's revenue rose by 7% to US$3.8 billion, or 5% on a constant exchange rate basis. After the results of Standard Chartered, the stock price was weak and closed at 51.55 yuan, the lowest level of the day; London stock price continued to fall, which was 2.7% lower than the Hong Kong closing price.
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In the third quarter, credit impairment was US$107 million, a decrease of US$246 million year-on-year; it increased by US$174 million quarter-to-quarter. In terms of business, the credit impairment of corporate, commercial and institutional banking businesses was 24 million U.S. dollars. There were no new major risk exposures in the third quarter of this year. The credit impairment of private and SME banking business was US$74 million, and the additional allocation by management remained unchanged at a stable level of US$140 million.
The common equity Tier 1 capital ratio reached 14.6% during the period, which was higher than the target range of 13% to 14%, compared with 14.1% at the end of June.
Expect revenue to regain growth next year
Standard Chartered expects that this year's revenue will be the same as last year on a fixed exchange rate basis, but will continue to decline in the fourth quarter of this year. According to the group, the basic business momentum for the whole year of this year is strong. It is expected that next year’s revenue is expected to return to the guideline growth rate of 5% to 7%; if the impact of currency exchange and performance-linked remuneration is taken into account, operating expenses will be Continue to stay at or below 10.4 billion yuan. Barring surprises, the group expects that credit impairment in the fourth quarter of this year will continue to remain at a low level. In addition, if software subsidies are not included, this year's common equity Tier 1 capital ratio will be maintained at approximately the highest level in the target range of 13% to 14%.
According to comprehensive brokerage forecasts, Standard Chartered’s median statutory pre-tax profit for the third quarter was US$965 million, a sharp jump of 1.2 times year-on-year, while adjusted basic pre-tax profit rose 45% to US$1.083 billion. It is expected that no quarterly dividend will be distributed.