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Standard Chartered PLC (GB:STAN)
LSE:STAN

Standard Chartered (STAN) AI Stock Analysis

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Standard Chartered

(LSE:STAN)

72Outperform
Standard Chartered demonstrates solid financial performance with strong revenue growth and strategic initiatives. However, challenges in cash flow and operational efficiency, along with neutral technical indicators, slightly temper the overall outlook.
Positive Factors
Capital Return
Capital return is considered positive with a final dividend of 28 cents and a share buyback of US$1.5 billion.
Financial Performance
The company achieved a 19% beat in pre-provision operating profit, indicating strong financial performance despite higher software impairment charges.
Non-Interest Income
Non-interest income exceeded expectations, driven by strong performance in wealth and markets sectors.
Negative Factors
Net Interest Income
Headline net interest income was impacted by the reclassification of deposit insurance costs.

Standard Chartered (STAN) vs. S&P 500 (SPY)

Standard Chartered Business Overview & Revenue Model

Company DescriptionStandard Chartered PLC is a leading international banking group, with a strong presence in Asia, Africa, and the Middle East. The company offers a wide range of financial products and services, including personal and corporate banking, wealth management, and trade finance. Standard Chartered operates through two main segments: Consumer, Private and Business Banking (CPBB), and Corporate, Commercial and Institutional Banking (CCIB). The bank is committed to driving commerce and prosperity through its unique diversity, providing innovative banking solutions to clients and customers across its markets.
How the Company Makes MoneyStandard Chartered makes money primarily through interest income from loans and advances to customers, which is a significant component of its revenue. The bank also earns fees and commissions from a variety of services, including trade finance, wealth management, and transaction banking. Additionally, Standard Chartered generates income from its treasury activities, which include managing the bank's liquidity and interest rate risk. The bank's earnings are bolstered by its strategic focus on high-growth markets in Asia, Africa, and the Middle East, where it capitalizes on trade flows and economic development. Partnerships with local banks and financial institutions further enhance its ability to offer competitive and comprehensive financial services, contributing to its revenue streams.

Standard Chartered Financial Statement Overview

Summary
Standard Chartered demonstrates solid revenue growth and profitability, supported by a strong balance sheet with no debt. However, declining cash flows and operational efficiency pose challenges that need addressing to sustain long-term performance.
Income Statement
75
Positive
Standard Chartered has shown a strong revenue growth rate of 19.08% from 2023 to 2024, with a net profit margin of 20.44% in 2024. However, the company has seen a decrease in EBIT margins since 2022, signaling potential challenges in operational efficiency.
Balance Sheet
85
Very Positive
The company's balance sheet is robust, with a strong equity position as indicated by a zero debt-to-equity ratio in 2024. The equity ratio of 5.99% highlights a stable financial structure, though it indicates reliance on liabilities.
Cash Flow
60
Neutral
Cash flow analysis reveals a concerning decline, with free cash flow decreasing significantly. The operating cash flow to net income ratio is negative, indicating challenges in cash generation relative to net income.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
18.57B19.81B16.64B16.18B14.63B14.91B
Gross Profit
18.27B19.81B17.72B16.18B14.63B14.91B
EBIT
4.75B0.005.20B11.99B3.35B1.59B
EBITDA
0.000.000.000.000.000.00
Net Income Common Stockholders
4.46B4.05B3.47B2.95B2.31B724.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
82.11B63.45B101.46B83.82B90.47B86.37B
Total Assets
688.76B849.69B822.84B819.92B827.82B789.05B
Total Debt
36.74B0.0057.59B51.15B49.34B47.16B
Net Debt
-45.37B-63.45B-43.87B-32.67B-41.14B-39.22B
Total Liabilities
638.41B798.40B772.49B769.91B775.18B738.32B
Stockholders Equity
50.08B50.89B49.96B49.67B52.27B50.40B
Cash FlowFree Cash Flow
0.00-21.90B-6.84B13.24B10.88B19.96B
Operating Cash Flow
0.00-20.49B-5.56B15.18B12.22B21.23B
Investing Cash Flow
0.0011.45B15.81B-22.58B-8.99B-4.48B
Financing Cash Flow
0.00-6.63B587.00M-772.00M265.00M2.37B

Standard Chartered Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1145.50
Price Trends
50DMA
1128.57
Positive
100DMA
1045.53
Positive
200DMA
900.69
Positive
Market Momentum
MACD
5.56
Positive
RSI
48.32
Neutral
STOCH
16.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STAN, the sentiment is Neutral. The current price of 1145.5 is below the 20-day moving average (MA) of 1168.33, above the 50-day MA of 1128.57, and above the 200-day MA of 900.69, indicating a neutral trend. The MACD of 5.56 indicates Positive momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 16.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:STAN.

Standard Chartered Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£157.13B9.0613.62%5.47%3.98%5.43%
75
Outperform
£42.02B8.159.03%2.86%5.56%31.39%
74
Outperform
£44.32B11.679.84%3.95%31.97%-21.96%
72
Outperform
$27.16B10.368.33%2.02%7.29%25.46%
GBNWG
71
Outperform
£36.96B8.5813.18%3.81%15.69%11.47%
64
Neutral
$14.25B10.268.97%4.33%16.33%-11.91%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:STAN
Standard Chartered
1,145.50
479.25
71.93%
GB:NWG
NatWest Group
459.10
205.90
81.32%
GB:HSBA
HSBC Holdings
885.40
298.52
50.87%
GB:BARC
Barclays
293.50
115.02
64.44%
GB:LLOY
Lloyds Banking
73.40
24.13
48.98%

Standard Chartered Earnings Call Summary

Earnings Call Date: Feb 21, 2025 | % Change Since: 2.35% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with record income, strategic progress in key segments, and significant shareholder returns. However, challenges remain in Hong Kong real estate and software asset write-offs. Overall, the positive aspects outweigh the negative ones.
Highlights
Record Income and Dividend Increase
The company achieved record income of $19.7 billion, with a 14% headline income growth. Additionally, a 37% increase in full-year dividend per share was announced along with a new $1.5 billion share buyback.
Strong Performance in Wealth Solutions and Global Markets
Wealth Solutions delivered a record performance with investment products income up 36%. Global Markets and Banking showed double-digit growth, contributing significantly to the income.
Fit for Growth Program Progress
The Fit for Growth program is ahead of schedule with $200 million in annualized savings achieved, and over 200 projects in progress aiming for $1.5 billion in savings.
Shareholder Distributions and CET1 Ratio
Total shareholder distributions since the full year 2023 results have reached $4.9 billion. The CET1 ratio stands at 14.2% with a strong level of capital generation.
Cross-Border Network Strategy
Cross-border network income grew 11% CAGR since 2019. The network strategy is benefiting from new globalization corridors, with around 1/3 of total network income being intra-Asia.
Lowlights
Challenges in Hong Kong Commercial Real Estate
A precautionary $58 million overlay was required for clients with exposure to Hong Kong commercial real estate due to market pressures.
Software Asset Write-Offs
A $561 million write-off of software assets was conducted as part of a proactive review of software accounting treatment.
Credit Impairment Increase
Credit impairment rose 5% to $557 million, mainly driven by high interest rate impacts on unsecured credit cards and personal loan portfolios.
Transaction Services Income Flat
Transaction services income was flat due to margin compression, with no significant growth expected in the near term.
Company Guidance
In the call, the company provided detailed guidance for its fiscal year 2024 performance. Key metrics highlighted include a return on tangible equity of 11.7%, which is an increase of 160 basis points year-on-year, and record income of $19.7 billion. The fourth quarter continued this strong trend, with particular success in Wealth Solutions and double-digit growth in Global Markets and Banking. The company announced a 37% increase in full-year dividend per share and a new share buyback of $1.5 billion, aiming for total shareholder distributions of at least $8 billion by 2026. For 2025, they are tracking towards the upper end of their 5% to 7% compound annual growth rate (CAGR) target from 2023 to 2026. Operating expenses were up by 7%, and credit impairment was $557 million, a 5% increase. The company's Fit for Growth program is one year in and progressing well, with $200 million of annualized savings already achieved. Additionally, the company's CET1 ratio was 14.2%, and they announced performance in key segments like Wealth and Retail Banking, which saw an 11% rise in income, and Ventures, with Mox growing its customer base significantly.

Standard Chartered Corporate Events

Private Placements and FinancingShareholder Meetings
Standard Chartered Granted Waiver for Equity Issuance
Positive
Mar 31, 2025

Standard Chartered PLC has received a waiver from the Stock Exchange of Hong Kong Limited, allowing it to seek shareholder approval at its upcoming annual general meeting for issuing Equity Convertible Additional Tier 1 Securities. This waiver, if approved, will enable the company to enhance its capital structure, potentially impacting its financial stability and market positioning until the next AGM or until August 2026.

Stock BuybackBusiness Operations and Strategy
Standard Chartered Advances Share Buy-back Program
Positive
Mar 31, 2025

Standard Chartered PLC announced the purchase of 1,191,842 of its ordinary shares as part of its ongoing share buy-back program. The shares were acquired at a volume-weighted average price of 1,158.1432 GB pence, and the company plans to cancel these shares, reducing its total number of shares in issue to 2,387,420,432. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Stock Buyback
Standard Chartered Advances Share Buy-Back Program
Positive
Mar 28, 2025

Standard Chartered PLC announced the purchase of 1,170,886 of its ordinary shares as part of a share buy-back program, with prices ranging from 1,145.0000 to 1,171.5000 GB pence. The company plans to cancel these shares, reducing the total number of shares in issue to 2,388,612,274, which will impact the total voting rights and potentially enhance shareholder value.

Stock BuybackBusiness Operations and Strategy
Standard Chartered Advances Share Buy-back Program with Recent Purchase
Positive
Mar 27, 2025

Standard Chartered PLC announced the purchase of 1,156,291 of its ordinary shares as part of its ongoing share buy-back program. The shares were acquired at prices ranging from 1,173.5 to 1,202.5 pence, with an average price of 1,186.5026 pence. This move is part of the company’s strategy to optimize its capital structure, and the purchased shares will be canceled, reducing the total number of shares in issue to 2,389,783,160. The buy-back reflects the company’s commitment to returning value to shareholders and may enhance its market position by improving financial metrics such as earnings per share.

Stock BuybackBusiness Operations and Strategy
Standard Chartered Executes Share Buy-back to Optimize Capital Structure
Positive
Mar 26, 2025

Standard Chartered PLC announced the purchase of 1,184,000 of its ordinary shares as part of a share buy-back program. The shares were bought at a volume-weighted average price of 1,187.7110 GB pence, with the intention to cancel them, reducing the total number of shares in issue to 2,390,939,451. This move is part of a strategic effort to optimize the company’s capital structure and potentially enhance shareholder value.

Stock BuybackBusiness Operations and Strategy
Standard Chartered Executes Share Buy-Back to Optimize Capital Structure
Positive
Mar 25, 2025

Standard Chartered PLC has executed a share buy-back program, purchasing 1,195,473 of its ordinary shares on 24 March 2025, with the intention of cancelling these shares. This move is part of a broader strategy to manage the company’s capital structure, potentially enhancing shareholder value by reducing the number of shares in circulation and thus increasing earnings per share. The buy-back was conducted through various trading venues, including the London Stock Exchange, with a total expenditure of over $323 million. Following the cancellation of these shares, the total number of voting rights in the company will be adjusted accordingly.

Stock BuybackBusiness Operations and Strategy
Standard Chartered Executes Share Buy-back to Optimize Capital Structure
Positive
Mar 24, 2025

Standard Chartered PLC announced the purchase of 1,186,430 of its ordinary shares as part of a share buy-back program. The shares were purchased at prices ranging from 1,152.5000 to 1,177.0000 GB pence, with a volume-weighted average price of 1,158.4694 GB pence. The company plans to cancel these shares, reducing the total number of shares in issue to 2,393,318,924, thereby impacting the total voting rights. This buy-back is part of a strategic move to manage the company’s capital structure and enhance shareholder value.

Stock BuybackBusiness Operations and Strategy
Standard Chartered Executes Share Buy-back to Optimize Capital Structure
Positive
Feb 28, 2025

Standard Chartered PLC announced the purchase of 1,116,741 of its ordinary shares as part of a share buy-back program. The shares were bought at an average price of 1,266.2633 GB pence and will be cancelled, reducing the total number of shares in issue to 2,410,831,613. This move is part of the company’s strategy to manage its capital structure and enhance shareholder value.

Delistings and Listing ChangesBusiness Operations and Strategy
Standard Chartered to Redeem CNH1.1 Billion Fixed Rate Notes
Neutral
Feb 28, 2025

Standard Chartered PLC has announced its decision to fully redeem its CNH1,100,000,000 4.350% Fixed Rate Notes due in 2026. The redemption will occur on March 18, 2025, after which the notes will be canceled, and their listing on the London Stock Exchange will be removed. This move reflects the company’s strategic financial management and could impact its debt profile and market positioning.

Stock BuybackBusiness Operations and Strategy
Standard Chartered Executes Share Buy-Back to Optimize Capital Structure
Positive
Feb 27, 2025

Standard Chartered PLC announced the purchase of 586,194 of its ordinary shares as part of a share buy-back program. The shares were acquired at prices ranging from 1,239 to 1,250 GB pence, with the intention to cancel them, thereby reducing the total number of shares in issue to 2,411,948,354. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Stock BuybackBusiness Operations and Strategy
Standard Chartered Executes Share Buy-Back to Optimize Capital Structure
Positive
Feb 26, 2025

Standard Chartered PLC announced the purchase of 491,297 of its ordinary shares as part of a share buy-back program. The shares were acquired at prices ranging from 1,211.5000 to 1,228.0000 GB pence, with a volume-weighted average price of 1,219.3637 GB pence. The company plans to cancel these shares, reducing the total number of shares in issue to 2,412,534,548, which will also be the total number of voting rights. This move is part of Standard Chartered’s strategy to optimize its capital structure and potentially enhance shareholder value.

Executive/Board Changes
Standard Chartered Director Joins ICG Board
Positive
Feb 26, 2025

Standard Chartered PLC has announced that Robin Lawther, an independent non-executive director, will join the board of Intermediate Capital Group plc as a non-executive director starting November 2025. This appointment could enhance Standard Chartered’s influence and strategic connections within the financial industry, potentially impacting its operations and stakeholder relationships positively.

Stock BuybackBusiness Operations and Strategy
Standard Chartered Executes Share Buy-Back Program
Positive
Feb 25, 2025

Standard Chartered PLC has executed a share buy-back program, purchasing over 1.2 million of its ordinary shares from J.P. Morgan Securities plc. The shares were bought at prices ranging from 1,179.0000 to 1,211.5000 GB pence, with a volume-weighted average price of 1,198.6814 GB pence. The company intends to cancel these shares, reducing its total shares in issue to 2,413,025,845, which will also be the total number of voting rights. This move is part of a strategic effort to manage the company’s capital structure and potentially enhance shareholder value.

DividendsFinancial Disclosures
Standard Chartered Schedules Board Meeting for Financial Results and Dividend Decision
Neutral
Feb 7, 2025

Standard Chartered PLC announced a Board Committee meeting scheduled for February 21, 2025, to approve the release of its financial results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial health and its future dividend policy, potentially impacting investor sentiment and market dynamics.

Stock BuybackBusiness Operations and Strategy
Standard Chartered Completes $1.5 Billion Share Buy-back Program
Positive
Jan 30, 2025

Standard Chartered PLC has completed its share buy-back program, purchasing 538,440 ordinary shares from Goldman Sachs International. This initiative, which started on August 1, 2024, has resulted in the repurchase and cancellation of over 137 million shares, amounting to approximately $1.5 billion. The completion of this program reflects SC’s strategic intent to enhance shareholder value and optimize capital structure.

Stock Buyback
Standard Chartered Advances Share Buy-back Programme
Positive
Jan 29, 2025

Standard Chartered PLC announced a share buy-back transaction where it purchased 556,441 of its ordinary shares through Goldman Sachs International. This buy-back is part of a previously disclosed plan from July 2024. The shares were bought at prices ranging between 1,058.00 pence and 1,083.50 pence, with a volume-weighted average price of 1,070.99 pence. The company plans to cancel these shares, reducing the total number of shares in circulation to 2,414,765,943. This move is aimed at optimizing the company’s capital structure and returning value to shareholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.