Standard Chartered PLC (STAN.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, Europe, the Americas, and the Middle East.The company operates through two segments: Corporate, Commercial and Institutional Banking; and Consumer, Private and Business Banking.It offers retail products, such as deposits, savings, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advices; and transaction banking services, such as cash management, working capital, and trade financing products.

The company also provides financial markets products and services that comprise project and transportation financing, debt capital markets and leveraged financing, financing and securities services, and sales and structuring services, as well as macro, commodities, and credit trading services.In addition, it offers digital banking solutions.The company serves financial institutions, governments, banks, investors, corporations, small businesses, and individuals.

It operates through approximately 776 branches.The company was founded in 1853 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on STAN

Standard Chartered's recent performance was driven by a strong Q3 earnings report, with a 10% rise in net profit to $1.03 billion, beating estimates. The bank's wealth business was a key driver, with strength in cross-border trade loans and wealth management. The company upgraded its operating income and return guidance, fueled by growth in Asian markets. Analysts have increased their price target, citing steady revenue growth expectations and improved business prospects. The bank's Q3 earnings and revenue surprises were +13.33% and +2.75%, respectively.

1.c. Company Highlights

Last Price	1634.5
Change Percentage	-1.65%
Open	1664.5
Previous Close	1662
Market Cap ( Millions)	37130
Volume	2633096
Year High	1709.5
Year Low	872.8
M A 50	1536.17
M A 200	1303.08

FCF Yield	0.00%
Dividend Yield	1.88%
ROE	9.51%
Debt / Equity	183.33%
Net Debt / EBIDTA	238.95%
Price To Book	0.96
Price Earnings Ratio	10.48
Price To FCF	0
Price To sales	1.22
EV / EBITDA	8.53

2. Standard Chartered Beats Expectations with Strong Q3 Results

The bank reported a 5% increase in operating income to $5.1 billion, driven by a strong performance in Wealth Solutions and Global Banking. Profit before tax was up 9% to $2 billion, and earnings per share (EPS) came in at $0.3955, beating analyst estimates of $0.3639. The results were a testament to the bank's growth engines, with Wealth Solutions delivering a record quarterly performance, driven by structured products and managed investments. As Diego De Giorgi noted, "Our growth engines have continued to deliver consistently, with a record quarterly performance in Wealth Solutions and Global Banking."

Publication Date: Oct -31

                                    📋 Highlights
                                    Profit Before Tax Growth::
                                                Increased by 9% to $2 billion, driven by 5% operating income growth ($5.1 billion) and strong performance in Wealth Solutions and Global Banking.
2025 Guidance Upgrade::
                                                Income growth updated to upper end of 5-7% range (constant currency), with RoTE target of ~13% (up from previous guidance).
Wealth Solutions Record Performance::
                                                Income up 27%, fueled by $13 billion in affluent net new money and structured products/managed investments growth.
Fit for Growth Savings::
                                                Achieved $566 million in run-rate savings (of $1.3 billion target) and incurred $454 million in restructuring charges since program launch.
Affluent Business Momentum::
                                                Accumulated over $40 billion in net new money YoY, ahead of 5-year $200 billion target, with high-quality deposits boosting asset deployment.

                                

Segment Performance

Wealth Solutions had a standout quarter, with income up 27% driven by affluent customers moving money from deposits into investment products. The company is focused on high-quality liabilities, with a large component of deposits in Hong Kong coming from Wealth Management. Global Banking also performed well, with underlying growth driven by Global Banking, Wealth Lending, and Mortgages. The bank's CASA ratio is stable, and it is actively managing its deployment of deposits into the asset side of its balance sheet.

Capital and Return on Tangible Equity

The bank's CET1 ratio was 14.2%, up 32 basis points quarter-on-quarter, excluding the impact of the $1.3 billion share buyback. The company is committed to delivering a return on tangible equity (RoTE) of around 13% in 2025, exceeding its previous guidance. While the company has high conviction in its ability to progress RoTE, it will provide a specific target for 2026 when full-year results are given.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of 0.91, the bank appears reasonably valued. The Dividend Yield is 1.96%, providing a relatively attractive return for investors. Analysts estimate revenue growth at 2.5% for next year, and the company's guidance for 2025 is towards the upper end of the 5% to 7% range at constant currency, excluding notable items. The bank's positioning for the next 5 to 10 years looks strong, with opportunities for growth in the affluent space and the network bank model.

3. NewsRoom

South Africa Confirms Standard Chartered’s Troubling Stablecoin Warning

Nov -26

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How the Narrative Around Standard Chartered Is Evolving Amid Analyst Price Target Shifts

Nov -25

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