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Standard Chartered

SEHK:2888
Snowflake Description

Adequate balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2888
SEHK
£23B
Market Cap
  1. Home
  2. HK
  3. Banks
Company description

Standard Chartered PLC., together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, and the Middle East. The last earnings update was 23 days ago. More info.


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2888 Share Price and Events
7 Day Returns
-0.7%
SEHK:2888
0.7%
HK Banks
-2.2%
HK Market
1 Year Returns
-15.9%
SEHK:2888
-16%
HK Banks
-15.4%
HK Market
2888 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Standard Chartered (2888) -0.7% -1.6% 6.9% -15.9% 9.2% -61.2%
HK Banks 0.7% -7.4% -6% -16% 24.6% 8.1%
HK Market -2.2% -9.5% -6% -15.4% 22% 6.7%
1 Year Return vs Industry and Market
Price Volatility
2888
Industry
5yr Volatility vs Market

Value

 Is Standard Chartered undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Standard Chartered to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Standard Chartered.

SEHK:2888 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 18 analysts.
= Stable Book Value * Return on Equity
= $15.09 * 6.5%
$0.98
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. $15.09
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2888
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.589 (1 + (1- 19%) (0%))
0.725
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.8 * 6.65%)
7.32%

Discounted Cash Flow Calculation for SEHK:2888 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Standard Chartered is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:2888 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.5% – 7.32%) * $15.09)
$-0.13
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.13 / (7.32% - 2%)
$-2.37
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $15.09 + $-2.37
$12.72
SEHK:2888 Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:STAN)
0.791
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $12.72 x 0.791
£10.05
Value per share (HKD) From above. HK$99.00
Current discount Discount to share price of HK$67.75
= -1 x (HK$67.75 - HK$99.00) / HK$99.00
31.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Standard Chartered is available for.
Intrinsic value
32%
Share price is HK$67.75 vs Future cash flow value of HK$99
Current Discount Checks
For Standard Chartered to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Standard Chartered's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Standard Chartered's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Standard Chartered's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Standard Chartered's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2888 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.19
LSE:STAN Share Price ** LSE (2019-05-23) in GBP £6.88
LSE:STAN Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.265 $8.7
Hong Kong Banks Industry PE Ratio Median Figure of 31 Publicly-Listed Banks Companies 6.15x
Hong Kong Market PE Ratio Median Figure of 1,478 Publicly-Listed Companies 11.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Standard Chartered.

SEHK:2888 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:STAN Share Price ÷ EPS (both in USD)

= 8.7 ÷ 0.19

46.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Standard Chartered is overvalued based on earnings compared to the HK Banks industry average.
  • Standard Chartered is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Standard Chartered's expected growth come at a high price?
Raw Data
SEHK:2888 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 46.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
19.6%per year
Hong Kong Banks Industry PEG Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.86x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:2888 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 46.55x ÷ 19.6%

2.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Standard Chartered is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Standard Chartered's assets?
Raw Data
SEHK:2888 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $15.15
LSE:STAN Share Price * LSE (2019-05-23) in GBP £6.88
LSE:STAN Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.265 $8.7
Hong Kong Banks Industry PB Ratio Median Figure of 31 Publicly-Listed Banks Companies 0.7x
Hong Kong Market PB Ratio Median Figure of 2,157 Publicly-Listed Companies 0.97x
SEHK:2888 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:STAN Share Price ÷ Book Value per Share (both in USD)

= 8.7 ÷ 15.15

0.57x

* Primary Listing of Standard Chartered.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Standard Chartered is good value based on assets compared to the HK Banks industry average.
X
Value checks
We assess Standard Chartered's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Standard Chartered has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Standard Chartered expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Standard Chartered expected to grow at an attractive rate?
  • Standard Chartered's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Standard Chartered's earnings growth is expected to exceed the Hong Kong market average.
  • Standard Chartered's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:2888 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2888 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 19.6%
SEHK:2888 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 5.3%
Hong Kong Banks Industry Earnings Growth Rate Market Cap Weighted Average 6.4%
Hong Kong Banks Industry Revenue Growth Rate Market Cap Weighted Average 8.8%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2888 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2888 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 17,753 3,620 3
2021-12-31 17,091 3,294 16
2020-12-31 16,239 2,820 16
2019-12-31 15,407 2,383 15
SEHK:2888 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 14,033 633
2018-12-31 13,980 -5,924 618
2018-09-30 14,334 1,356
2018-06-30 14,042 -10,516 1,146
2018-03-31 13,616 1,092
2017-12-31 13,209 -27,085 774
2017-09-30 12,779 1,292
2017-06-30 12,349 -5,701 28
2017-03-31 11,864 -3,244 -225
2016-12-31 11,378 -786 -478
2016-09-30 10,496 30,512 -1,918
2016-06-30 9,613 61,810 -3,357

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Standard Chartered's earnings are expected to grow by 19.6% yearly, however this is not considered high growth (20% yearly).
  • Standard Chartered's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2888 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Standard Chartered Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2888 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.20 1.36 0.95 3.00
2021-12-31 1.08 1.34 0.75 14.00
2020-12-31 0.90 1.06 0.69 16.00
2019-12-31 0.73 0.88 0.50 16.00
SEHK:2888 Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31
2018-12-31 0.19
2018-09-30
2018-06-30 0.35
2018-03-31
2017-12-31 0.24
2017-09-30
2017-06-30 0.01
2017-03-31 -0.07
2016-12-31 -0.15
2016-09-30 -0.62
2016-06-30 -1.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Standard Chartered is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Standard Chartered's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Standard Chartered has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Standard Chartered performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Standard Chartered's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Standard Chartered's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Standard Chartered's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Standard Chartered's 1-year earnings growth is negative, it can't be compared to the HK Banks industry average.
Earnings and Revenue History
Standard Chartered's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Standard Chartered Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2888 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 14,033.00 633.00 11,494.00
2018-12-31 13,980.00 618.00 11,494.00
2018-09-30 14,334.00 1,356.00 10,332.00
2018-06-30 14,042.00 1,146.00 10,647.00
2018-03-31 13,615.50 1,091.50 7,897.00
2017-12-31 13,209.00 774.00 10,332.00
2017-09-30 12,779.00 1,291.50 2,715.50
2017-06-30 12,349.00 28.00 10,301.00
2017-03-31 11,863.50 -225.00 10,138.00
2016-12-31 11,378.00 -478.00 9,975.00
2016-09-30 10,495.50 -1,917.50 9,977.50
2016-06-30 9,613.00 -3,357.00 9,980.00
2016-03-31 10,350.50 -2,858.50 10,229.00
2015-12-31 11,088.00 -2,360.00 10,478.00
2015-09-30 12,865.50 -348.00 10,741.00
2015-06-30 14,643.00 1,664.00 11,004.00
2015-03-31 15,286.00 2,088.00 11,024.50
2014-12-31 15,929.00 2,512.00 11,045.00
2014-09-30 16,036.00 3,340.00 10,643.50
2014-06-30 16,143.00 4,168.00 10,242.00
2014-03-31 16,601.50 4,078.50 10,217.50
2013-12-31 17,060.00 3,989.00 10,193.00
2013-09-30 17,448.50 4,050.00 10,535.00
2013-06-30 17,837.00 4,111.00 10,877.00
2013-03-31 17,569.00 4,448.50 10,799.50
2012-12-31 17,301.00 4,786.00 10,722.00
2012-09-30 17,144.50 4,912.00 10,317.50
2012-06-30 16,988.00 5,038.00 9,913.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Standard Chartered has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Standard Chartered used its assets less efficiently than the HK Banks industry average last year based on Return on Assets.
  • Unable to establish if Standard Chartered improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Standard Chartered's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Standard Chartered has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Standard Chartered's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Standard Chartered's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Standard Chartered Company Filings, last reported 1 month ago.

SEHK:2888 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 51,101.00 0.00 9,326.00
2018-12-31 50,352.00 160,470.00 219,527.00
2018-09-30 51,643.00 4,514.00 8,805.00
2018-06-30 51,488.00 173,375.00 193,148.00
2018-03-31 51,807.00 158,462.00 203,702.00
2017-12-31 51,807.00 158,462.00 203,702.00
2017-09-30
2017-06-30 51,362.00 122,368.00 141,404.00
2017-03-31 51,362.00 122,368.00 141,404.00
2016-12-31 48,658.00 175,297.00 229,777.00
2016-09-30 48,658.00 175,297.00 229,777.00
2016-06-30 48,821.00 149,038.00 147,329.00
2016-03-31 48,821.00 149,038.00 147,329.00
2015-12-31 48,512.00 152,588.00 208,683.00
2015-09-30 48,512.00 152,588.00 208,683.00
2015-06-30 49,344.00 161,229.00 158,230.00
2015-03-31 49,344.00 161,229.00 158,230.00
2014-12-31 46,738.00 167,048.00 260,457.00
2014-09-30 46,738.00 167,048.00 260,457.00
2014-06-30 48,562.00 143,748.00 146,784.00
2014-03-31 48,562.00 143,748.00 146,784.00
2013-12-31 46,841.00 153,045.00 195,696.00
2013-09-30 46,841.00 153,045.00 195,696.00
2013-06-30 45,358.00 130,864.00 140,304.00
2013-03-31 45,358.00 130,864.00 140,304.00
2012-12-31 46,055.00 127,020.00 171,415.00
2012-09-30 46,055.00 127,020.00 171,415.00
2012-06-30 42,934.00 133,746.00 140,655.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Standard Chartered has an acceptable proportion of non-loan assets held.
  • Standard Chartered's liabilities are made up of primarily low risk sources of funding.
  • Loans at Standard Chartered are broadly funded by customer deposits.
  • Standard Chartered's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Standard Chartered has a low allowance for bad loans.
  • Standard Chartered has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Standard Chartered's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Standard Chartered has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Standard Chartered's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.41%
Current annual income from Standard Chartered dividends. Estimated to be 3.9% next year.
If you bought HK$2,000 of Standard Chartered shares you are expected to receive HK$48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Standard Chartered's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Standard Chartered's dividend is below the markets top 25% of dividend payers in Hong Kong (5.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2888 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
Hong Kong Banks Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 5.2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2888 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.45 3.00
2021-12-31 0.41 17.00
2020-12-31 0.33 19.00
2019-12-31 0.26 18.00
SEHK:2888 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-26 0.210 2.505
2018-10-31 0.120 1.544
2018-07-31 0.120 1.506
2018-02-28 0.110 1.111
2017-04-26 0.000 0.000
2017-02-24 0.000 0.000
2016-11-01 0.000 0.000
2016-08-03 0.000 0.000
2016-04-26 0.000 0.000
2015-11-03 0.000 0.000
2015-03-04 0.860 6.199
2014-09-04 0.860 5.523
2014-03-05 0.860 4.070
2013-08-06 0.856 3.765
2013-03-05 0.840 3.494
2012-03-22 0.760 3.229
2012-02-29 0.760 2.996
2011-04-08 0.692 2.940
2011-03-25 0.692 2.597
2011-03-16 0.692 2.684
2011-03-02 0.692 2.622
2010-06-03 0.660 2.394
2010-05-17 0.660 2.774
2010-03-26 0.660 2.496
2010-03-03 0.660 2.495
2009-08-04 0.636 2.608

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Standard Chartered's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Standard Chartered's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Standard Chartered afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Standard Chartered has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Standard Chartered's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bill Winters
COMPENSATION $5,950,000
AGE 57
TENURE AS CEO 3.9 years
CEO Bio

Mr. William Thomas Winters, also known as Bill, CBE has been the Group Chief Executive Officer of Standard Chartered PLC and Standard Chartered Bank since June 10, 2015. Mr. Winters served as the Chairman of Standard Chartered Bank until 2019. He also serves on the Board of Colgate University. He has been an Executive Director of Standard Chartered PLC & Standard Chartered Bank since June 10, 2015 and June 01, 2015 respectively. He joined Standard Chartered in May 2015. He served as the Chairman and Chief Executive Officer of Renshaw Bay from 2011 to 2015. Mr. Winters founded the Renshaw Bay in February 2011. He has had a distinguished career in banking, with JP Morgan in diverse leadership roles. He joined JPMorgan in 1983. He served as Co-Chief Executive of JP Morgan Investment Bank from 2004 to 2009. Prior to this, he served as the Co-Chief Executive Officer at JPMorgan’s investment bank from 2003 to 2010 and served as its Deputy Head of the Investment Bank and Head of Credit and Rate Markets at JPMorgan Chase & Co. from March 2004 to September 2009. Mr. Winters was responsible for oversight for Europe and Asia-Pacific along with working in various corporate finance and markets areas of it and also served as the Head of Global Markets at J.P. Morgan & Co. Incorporated. He served as a Non-Executive Director of Pension Insurance Corporation PLC since October 22, 2012 until October 01, 2015. He has been an Independent Non-Executive Director of Novartis International AG and Novartis AG since 2013. He serves as a Director of The Young Vic Company Limited. He has been a Director at Standard Chartered Bank since June 10, 2015. He served as a Non-Executive Director of RIT Capital Partners plc from October 10, 2011 to July 26, 2012. He served as a Director of J.P. Morgan Cazenove Limited since November 2004. He is a career banker with significant frontline global banking experience and a proven track record of leadership and financial success. He has extensive experience of working in emerging markets and a proven record in spotting and nurturing talent. Mr. Winters is a Member of the Board of the Young Vic Theatre and the Chairman of The Print Room. He was invited to be a committee Member of the Independent Commission on Banking, established by the UK government in 2010 to recommend ways to improve competition and financial stability in banking. Subsequently, he served as advisor to the Parliamentary Commission on Banking Standards and was asked by the Court of the Bank of England to complete an independent review of the bank’s liquidity operations. He was a commissioner on the UK Independent Commission on Banking in 2010 and 2011 and was awarded the title of Commander of the Order of the British Empire in 2013. He published a review in 2012 into the Bank of England’s framework for providing liquidity to the banking system. He received a CBE in 2013. Mr. Winters received an MBA from University of Pennsylvania - The Wharton School and a Bachelor’s Degree in International Relations from Colgate University.

CEO Compensation
  • Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Bill's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Standard Chartered management team in years:

3.9
Average Tenure
57
Average Age
  • The tenure for the Standard Chartered management team is about average.
Management Team

Bill Winters

TITLE
Group Chief Executive & Director
COMPENSATION
$6M
AGE
57
TENURE
3.9 yrs

Andy Halford

TITLE
Group CFO & Director
COMPENSATION
$4M
AGE
59
TENURE
4.8 yrs

David Whiteing

TITLE
Group Chief Operating Officer
AGE
49
TENURE
0.3 yrs

Sumit Dayal

TITLE
Group Head of Corporate Finance
TENURE
4.1 yrs

Michael Gorriz

TITLE
Group Chief Information Officer
AGE
58
TENURE
3.8 yrs

Mark Stride

TITLE
Global Head of Investor Relations

David Fein

TITLE
Group General Counsel
AGE
57
TENURE
5.7 yrs

Tracey McDermott

TITLE
Group Head of Corporate Affairs
AGE
48
TENURE
1.2 yrs

Jon Tracey

TITLE
Global Head of Communications & Head of Media Relations

Tanuj Kapilashrami

TITLE
Group Head of Human Resources
AGE
40
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Standard Chartered board of directors in years:

3.9
Average Tenure
58
Average Age
  • The tenure for the Standard Chartered board of directors is about average.
Board of Directors

José Viñals Iñiguez

TITLE
Group Chairman
COMPENSATION
$1M
AGE
64
TENURE
2.4 yrs

Bill Winters

TITLE
Group Chief Executive & Director
COMPENSATION
$6M
AGE
57
TENURE
3.9 yrs

Naguib Kheraj

TITLE
Deputy Chairman
COMPENSATION
$357K
AGE
54
TENURE
2.4 yrs

Andy Halford

TITLE
Group CFO & Director
COMPENSATION
$4M
AGE
59
TENURE
4.8 yrs

Mary Huen

TITLE
Head of Retail Clients-Greater China Region
AGE
63

Christine Hodgson

TITLE
Senior Independent Director
COMPENSATION
$304K
AGE
54
TENURE
1.3 yrs

Jasmine Whitbread

TITLE
Independent Non-Executive Director
COMPENSATION
$206K
AGE
54
TENURE
4.1 yrs

Gay Evans

TITLE
Independent Non-Executive Director
COMPENSATION
$192K
AGE
64
TENURE
4.1 yrs

David Conner

TITLE
Independent Non-Executive Director
COMPENSATION
$266K
AGE
70
TENURE
3.3 yrs

Louis Cheung

TITLE
Independent Non-Executive Director
COMPENSATION
$135K
AGE
55
TENURE
6.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Standard Chartered insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
13. Mar 19 Buy Mark Smith Individual 11. Mar 19 11. Mar 19 33,823 HK$62.80 HK$2,124,139
13. Mar 19 Buy Sunil Kaushal Individual 11. Mar 19 11. Mar 19 41,054 HK$62.80 HK$2,578,257
13. Mar 19 Buy Tracy Clarke Individual 11. Mar 19 11. Mar 19 29,709 HK$62.80 HK$1,865,773
13. Mar 19 Buy Pi Cheng Hung Individual 11. Mar 19 11. Mar 19 63,466 HK$62.80 HK$3,985,766
13. Mar 19 Buy William Winters Individual 11. Mar 19 11. Mar 19 162,509 HK$62.80 HK$10,205,825
13. Mar 19 Buy Andrew Halford Individual 11. Mar 19 11. Mar 19 52,776 HK$62.80 HK$3,314,417
06. Nov 18 Buy Sunil Kaushal Individual 05. Nov 18 05. Nov 18 60,000 HK$58.29 HK$3,497,303
06. Nov 18 Buy William Winters Individual 05. Nov 18 05. Nov 18 140,000 HK$58.68 HK$8,215,462
05. Nov 18 Buy Jasmine Whitbread Individual 02. Nov 18 02. Nov 18 1,000 HK$59.01 HK$59,008
05. Nov 18 Buy José Viñals Iñiguez Individual 02. Nov 18 02. Nov 18 10,000 HK$58.99 HK$589,878
05. Nov 18 Buy Byron Grote Individual 01. Nov 18 02. Nov 18 10,500 HK$59.13 HK$620,263
05. Nov 18 Buy Naguib Kheraj Individual 02. Nov 18 02. Nov 18 38,000 HK$58.96 HK$2,240,304
25. Sep 18 Buy Byron Grote Individual 21. Sep 18 21. Sep 18 5,000 HK$66.15 HK$330,769
X
Management checks
We assess Standard Chartered's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Standard Chartered has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Standard Chartered PLC., together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, and the Middle East. The company operates through Corporate & Institutional Banking, Retail banking, Commercial Banking, and Private Banking segments. It offers retail products, such as deposits, savings, mortgages, credit cards, and personal loans; wealth management that include investments, portfolio management, insurance and advices, and planning services; and transaction banking services, such as cash management, payments and transactions, securities services, and trade financing products. The company also provides corporate finance products and services that include structured and project financing, strategic advising, and mergers and acquisitions; and financial market services, such as investment, risk management, and debt capital markets. It serves corporations, financial institutions, governments, high net worth individuals, small businesses, mid-sized companies, and individuals. The company operates through approximately 1,026 branches. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.

Details
Name: Standard Chartered PLC
2888
Exchange: SEHK
Founded: 1853
£224,716,898,676
3,289,851,218
Website: http://www.sc.com
Address: Standard Chartered PLC
1 Basinghall Avenue,
London,
Greater London, EC2V 5DD,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE STAN Ordinary Shares London Stock Exchange GB GBP 05. May 1994
OTCPK SCBF.F Ordinary Shares Pink Sheets LLC US USD 05. May 1994
DB STD Ordinary Shares Deutsche Boerse AG DE EUR 05. May 1994
SEHK 2888 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 05. May 1994
SHSC 2888 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 05. May 1994
SZSC 2888 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 05. May 1994
BATS-CHIXE STANL Ordinary Shares BATS 'Chi-X Europe' GB GBP 05. May 1994
LSE 58GZ 6.409%-FRN PERP USD 'REGS' London Stock Exchange GB USD 18. Mar 2009
LSE 37ZL ADS EACH REPR 1 NON-CUM RED PRF SH'REGS' London Stock Exchange GB USD 01. Jun 2007
BSE 580001 IDR EACH REPR 0.10 SHARE Mumbai Stock Exchange IN INR 15. Jun 2010
DB STDK 6.409%-FRN PERP USD 'REGS' Deutsche Boerse AG DE USD 18. Mar 2009
Number of employees
Current staff
Staff numbers
82,827
Standard Chartered employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 12:43
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/22
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.