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小摩:维持渣打集团(02888)“增持”评级 上调展望指引为最大亮点

Citi: Maintains stanchart (02888) 'shareholding' rating, with the most significant highlight being the upward outlook guidance.

Zhitong Finance ·  Oct 31 15:01  · Ratings

Stanchart raised its shareholder return guidance for 2024 to 2026, raising the dividend payout from $5 billion to $8 billion, while market expectations are $8.4 billion.

According to the Zhidao Finance app, JPMorgan released a research report stating that it maintains a 'shareholding' rating on Stanchart Group (02888), but believes that HSBC Holdings (00005) has clearer earnings visibility for next year. The bank expects a mid-single-digit upward revision in market earnings forecasts for Stanchart this year.

The report states that Stanchart Group exceeded expectations in third-quarter revenue, costs, and asset quality, with the raised outlook guidance being the biggest highlight. Its third-quarter effective tax rate is 16% higher than market expectations, driven by 4% higher revenue than expected and 2% and 25% lower operating costs and impairments than expected. Stanchart has also raised its revenue growth guidance for this year from over 7% to approaching 10%, slightly below the market expectation of just under 8.5%. The 2026 tangible book value ROI guidance has also been increased by 1 percentage point to 13%, higher than the market's expected 12.4%.

However, on a less optimistic note, the quarter's common equity Tier 1 capital ratio is 14.2%, below the market's expected 14.3%, based on market risk of risk-weighted assets. Stanchart has raised its shareholder return guidance for 2024 to 2026, with the dividend payout increasing from $5 billion to $8 billion, while the market's expectation is $8.4 billion. The group indicated that the current interest rate environment and outlook make next year's net interest income growth more challenging, with market expectations anticipating a 1% decline. The bank sees downside risks to net interest income, as the bullish impact has already been mainly reflected in 2024.

The translation is provided by third-party software.


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