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Standard Chartered raises profitability outlook as fourth-quarter loss narrows
- Fourth-quarter pre-tax profit was US$123 million, missing a consensus estimate of US$571 million
- Bank announces US$1 billion share buy-back programme, increases annual dividend to 18 cents a share
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Chad Brayin London
Standard Chartered, one of Hong Kong’s three currency-issuing banks, said its profitability would improve in the next two years, after defying headwinds in its China business to report a narrower loss in the fourth quarter.
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The London-based lender, which focuses its business in emerging markets, said it now expects the 2023 return on tangible equity (ROTE) to approach its long-running 10 per cent target from 8 per cent last year, exceed 11 per cent in 2024 and to “continue to grow thereafter”.
The bank’s fourth-quarter loss narrowed to US$291 million, from US$457 million in the same quarter a year earlier. Pre-tax profit was US$123 million, missing the US$571 million expected by analysts.
Bill Winters, the Standard Chartered CEO, said he was “pretty encouraged” by the outlook for the bank’s Hong Kong and Chinese business following the reopening of the mainland border.
“We are seeing a pickup in business. Clearly, we’re seeing travel return, which is helpful. We’re seeing mainland clients visiting Hong Kong, in most cases for the first time in three years, which is obviously good for our Hong Kong business,” Winters said on a conference call with journalists on Thursday.
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“It’s coinciding with a return of some health to the Chinese and Hong Kong equity markets, which is also helpful in reigniting interest in re-engaging with markets.
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