occurrences

Standard Chartered (2888.HK) released its fourth quarter results report for 2023.

reviews

23Q4 revenue fell short of expectations, and profit before tax exceeded expectations:

Basic operating income grew at a year-on-year rate of +6.9%, lower than Bloomberg's agreed forecast of +10.9%. The main reason was that other revenue fell short of expectations, including:

Net interest income was +6.0% YoY, higher than the consensus estimate of +5.7%.

Other revenue was +8.2% YoY, below the agreed forecast of 16.5%.

The audited profit before tax was +824.4% YoY, higher than Bloomberg's agreed forecast of +766.8%.

23Q4 net interest spread was better than expected, and deposit and loan growth exceeded expectations:

NIM rose 12 bps year over year to 1.70%, higher than Bloomberg's agreed forecast of 1.67%.

Total customer loans and advances were -7.6% year-on-year, better than Bloomberg's agreed forecast of -8.1%.

Customer deposits were +1.7% year over year, better than Bloomberg's agreed forecast of -1.1%.

23Q4 Asset Quality:

Credit impairment losses of $62 million fell short of Bloomberg's agreed estimate of $474 million.

Other impairment losses of $41 million were higher than Bloomberg's unanimous estimate of -$0.11 billion.

The defect rate fell 15 bps month-on-month to 2.47%, higher than Bloomberg's agreed forecast of 2.03%.

23Q4 CET1 and dividends:

The core Tier 1 capital (CET1) adequacy ratio increased 0.1 pct year over year to 14.10%, higher than Bloomberg's agreed forecast of 13.95%.

The company said it has increased its annual dividend, up 50% year over year, and will launch a $1 billion share repurchase program.

risks

Global economic growth fell short of expectations; interest rate hikes fell short of expectations, and asset quality fell short of expectations.