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Standard Chartered PLC Stock Analysis

Small Cap
Evaluated by 1472 users | BSE: 580001 | NSE: STAN |
Bank - Private
Standard Chartered PLC was incorporated in England and Wales on November 18, 1969 and is registered as a public limited company pursuant to a merger of the Chartered Bank and The Standard Bank . Both banks were established in the mid-nineteenth century and their origins lie in financing trade...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Standard Chartered PLC has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
 Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17
Net Interest Income (Rs. Cr.)2,7483,1603,8914,0024,2535,0145,3875,5835,8655,371
Y-o-Y Gr. Rt.33-15%23.1%2.9%6.3%17.9%7.4%3.7%5.1%-8.4%
Total Income7,2008,7468,5138,82410,93111,89113,12413,42412,01312,268
Y-o-Y Gr. Rt.-21.5%-2.7%3.7%23.9%8.8%10.4%2.3%-10.5%2.1%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
25.2528.2231.4730.4725.6810.864.134.11.353.28
Y-o-Y Gr. Rt.-11.8%11.5%-3.2%-15.7%-57.7%-62%-0.7%-67.1%143%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
105.61133.82153.5175.23193.5266.5649.3334.0632.4134.69
Y-o-Y Gr. Rt.-26.7%14.7%14.2%10.4%-65.6%-25.9%-31%-4.8%7%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1 : Not Good
Net Profit/Total Funds (%)2.582.232.282.111.522.451.262.320.771.78
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%): Colour Rating Guide
  • < 0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1: Not Good
Net NPA to Net Advances (%)1.041.371.40.270.71.630.450.341.070.18
To view Capital Adequacy Ratio Colour Rating Guide click here
Capital Adequacy Ratio: Colour Rating Guide
  • > 12% : Very Good
  • 9%-12% : Somewhat Good
  • <9%: Not Good
Capital Adequacy Ratio - - - - - - - - - 0%
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Standard Chartered PLC should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Interest Income7.7%4.8%-0.1%-8.4%
Total Income6.1%2.3%-2.2%2.1%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
-20.3%-33.7%-7.4%143%
Book Value per Share
-11.6%-29.1%-11.1%7%
Share Price -8.9% -8.4% -14.3% -37.8%
Key Financial Ratios
RATIOS \ YEARSMar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17
Interest Earned / Total Income67.7564.5966.6771.9972.6676.3976.0375.5583.4178.34
Margins
To view Margins Colour Rating Guide click here
Margins: Colour Rating Guide
  • >2.75 : Very Good
  • 1.75-2.75 : Somewhat Good
  • <1.75 : Not Good
NIM (%)5.35.5265.064.855.115.175.045.464.7
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15% : Very Good
  • 12%-15% : Somewhat Good
  • <12% : Not Good
Return on Equity (%)28.1823.5721.9118.5413.9318.968.5513.794.079.78
Liquidity Ratio
To view Liquidity Ratio Colour Rating Guide click here
Liquidity Ratio: Colour Rating Guide
  • >35 : Very Good
  • 25-35 : Somewhat Good
  • <25 : Not Good
CASA (%) 47.443.0647.4942.7240.1438.3635.1734.7137.0236.89
Entity Percentage Holding
Institutions 31.35%
Non-Institutions 68.65%
Pledged *0.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Standard Chartered PLC and arrived at the following conclusion:

Past 10 year's financial track record indicates that Standard Chartered PLC is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Standard Chartered PLC's performance infers:

Standard Chartered PLC earnings have declined by -33.7%, whereas share price has depreciated -8.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Standard Chartered PLC share prices over the last 10 years. Here is what we found out:

Standard Chartered PLC share price has depreciated -11% annually over the past ten years.

Standard Chartered PLC was incorporated in England and Wales on November 18, 1969 and is registered as a public limited company pursuant to a merger of the Chartered Bank and The Standard Bank . Both banks were established in the mid-nineteenth century and their origins lie in financing trade in the emerging markets of Asia and Africa. The company changed its name from Standard Chartered Bank Public Limited Company to Standard Chartered PLC on January 1, 1985.

The Chartered Bank opened its

Standard Chartered PLC was incorporated in England and Wales on November 18, 1969 and is registered as a public limited company pursuant to a merger of the Chartered Bank and The Standard Bank . Both banks were established in the mid-nineteenth century and their origins lie in financing trade in the emerging markets of Asia and Africa. The company changed its name from Standard Chartered Bank Public Limited Company to Standard Chartered PLC on January 1, 1985.

The Chartered Bank opened its first branches in Mumbai, Kolkata and Shanghai in 1858, followed by Hong Kong in 1859 and was given a licence to issue Hong Kong bank notes in 1862. The company’s shares and preference shares are listed on the official list and traded on the London Stock Exchange. The company’s shares are listed on the premium segment of the official list and the company’s preference shares are listed on the standard segment of the official list. Its shares are also listed and traded on the Hong Kong Stock Exchange.

The company is headquartered in the UK where it is regulated by the FSA. The group’s head office provides guidance on governance and regulatory standards across the group’s network.

Business area of the company

The company operates through a number of subsidiaries including SCB, one of the leading international banking and financial services company. SCB particularly focuses on the markets of Asia, Africa and the Middle East. The company has no significant operations or assets other than its 100% interest in SCB.

Business Division

  • Consumer Banking: Consumer Banking products and services include banking services, deposit-taking services, credit cards, personal loans, mortgages, auto finance and wealth management services. Major markets include Hong Kong, Singapore, Malaysia, Indonesia, Korea, Pakistan, India, Taiwan and the UAE.
  • Wholesale Banking: With business operations located in Singapore and a delivery footprint that spans its network, Standard Chartered’s Wholesale Banking business provides corporate and institutional clients with trade finance, cash management, securities services, foreign exchange and risk management, capital raising, corporate and principal finance solutions.

For the year ended 31 December 2009, Consumer Banking and Wholesale Banking contributed 17% and 79% respectively, of Standard Chartered’s operating profit before taxation and impairment.

Product Mix of the company

  • Transaction Banking: The group is a global leader in the provision of transaction banking services. It provides basic lending services, as well as a full suite of trade finance, securities services and cash management products and services.
  • Financial Markets: The financial market at Standard Chartered is a globally integrated business spanning Asia, Africa, the Middle East, the UK and US. Financial Markets includes trading functions such as equities, commodities, fixed income trading (rate, foreign exchange and credit), the group’s capital markets business and structured products.
  • Corporate Finance: The corporate finance business at the group has shown growth in recent years. It is one of the key focal points for the wholesale banking strategy of adding sophisticated product and service capability and as such, accounts for an increasing proportion of the company’s overall business. The corporate finance offers corporate advisory services focusing on mergers and acquisitions advisory services and 103 leveraged finance.
  • Principal Finance: Standard Chartered’s principal finance business focuses on corporate private equity, infrastructure and real estate (through a dedicated fund in each area) and alternative investments. The focus in private equity is on investing in mid-to-late stage companies and management buy-outs and focuses on companies across the Standard Chartered footprint.

Principal Subsidiaries of the company

The company has over 300 direct and indirect subsidiaries, joint ventures and associates. They contribute approximately 90% of the group’s business in terms of total operating income as at 31 December 2009.

Some of the principal subsidiaries of the company are:-

  • Standard Chartered Bank, England and Wales
  • Standard Chartered First Bank Korea
  • Standard Chartered Bank Malaysia Berhad,
  • Standard Chartered Bank (Pakistan) Limited,
  • Standard Chartered Bank (Taiwan) Limited,
  • Standard Chartered Bank (Hong Kong)
  • Standard Chartered Bank (China) Limited,
  • Standard Chartered Bank (Thai) Public
  • Standard Chartered Bank Nigeria Limited,
  • Standard Chartered Bank Kenya Limited,
  • Standard Chartered Private Equity Limited, Hong Kong

Milestones

  • Feb 2009 - Completes acquisition of Cazenove Asia
  • Dec 2008 - Increases its investment in UTI Securities to 74.9%
  • Dec 2008 - Acquires the ‘good bank’ portion of Asia Trust and Investment Corporation
  • Nov 2008 - Announces plans to acquire Lehman Brothers team in Brazil
  • May 2008 - Announces raising strategic stake in Vietnam's Asia Commercial Bank to 15%
  • Feb 2008 - Standard Chartered to acquires South Korea's Yeahreum Mutual Savings Bank
  • Feb 2008 - Completes acquisition of American Express Bank, a wholly owned subsidiary of American Express Company, with operations in 47 countries
  • Jan 2008 - The company’s First Bank Korea acquires an 80% stake in South Korea’s A Brain, a funds administration company
  • Jan 2008 - Acquires a 49% strategic stake in India’s UTI Securities, a leading local broking firm.
  • Dec 2007 - Completes acquisition of Harrison Lovegrove, a leading global oil and gas M&A advisory boutique
  • Oct 2007 - Acquires Pembroke, an aircraft leasing, financing and management firm
  • End 2006 - Launched tender offer for 100% in Hsinchu International Bank ($1.2bn) 
  • Sep 2006 - Acquisition of 95.37% Union Bank ($487mn)
  • Sep 2006 - Acquisition of 26% stake in PermataBank by the consortium of Standard Chartered Bank and PT Astra International Tbk ($193m). Total stake held in PermataBank by consortium today is 89%.
  • Jun 2006 - Acquisition of 25% in First Africa Group Holdings
  • Dec 2005 - Acquisition of 20% stake in Fleming Family and Partners ($78m)
  • Sep 2005 - Acquisition of 19.99% of China Bohai Bank ($123m)
  • Aug 2005 Acquisition of Amex Bank's Bangladesh business ($25m)
  • Jun 2005 - Acquisition of 8.56% stake in Asia Commercial Bank ($22m)
  • Apr 2005 - Acquisition of a minority stake (6%) in Travelex as part of Apax led consortium
  • Jan 2005 - Acquisition of Korea First Bank ($3.3bn)
  • Dec 2004 - Acquisition of ANZ's Project Finance business with assets ($15m)
  • Nov 2004 - Acquisition of 63% stake in PermataBank by the consortium of Standard Chartered Bank & PT Astra International Tbk ($355m)
  • Jun 2004 - Acquisition of PrimeCredit
  • Sep 2000 - Acquisition of Chase Manhattan Card Company ($1.32bn)
  • Jul 2000 - Acquisition of ANZ Grindlays ($1.34bn)

Awards and Achievements

  • Asian Banking and Finance Retail Banking Awards 2008
  • Private Banker International Awards 2008
  • 2008 Euromoney Awards For Excellence
  • Global Finance Stars of China Awards 2008
  • Asia Interactive Awards 2008
  • CNBC Financial Advisors Award 2008
  • British Business Awards 2008
  • The Asian Banker Excellence in Retail Financial Services Awards 2008
  • Global Finance 2008
  • Kenya Annual Banking Gala 2008
  • The Asset Triple A Asian Awards 2008
  • The Asian Banker Awards
  • Euromoney Islamic Finance Awards 2008
  • Euromoney Awards for Excellence 2008
  • FinanceAsia Country Awards 2008
  • Global Finance Awards 2008
  • Global Finance Best Sub-Custodian Bank Awards 2008
  • Global Finance Best Internet Bank Awards 2008 and many more
  • 2012

Asian Banking & Finance Retail Banking Awards 2012
Asia Risk Awards 2012
The Asian Private Banker Awards 2012
Global Finance Best Foreign Exchange Providers Awards 2012
Global Finance Best Supply Chain Finance Provider 2012
IFR Awards 2012
Private Banker International Global Wealth Awards 2012
Retail Banker International Awards 2012

  • 2013

Awards for Excellence 2013
World's Best Supply Chain Finance Provider 2013
World's Best Sub-Custodian Banks 2013
Asia Risk Awards 2013
The Asset Triple A Asset Servicing, Fund Management and Investor Awards
Bank of the Year Awards 2013
IFR Asia Awards 2013
WealthBriefingAsia Awards 2013'

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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