MarketWatch  May 20  Comment 
Benjamin Lawsky, aka the sheriff of Wall Street, is planning to step down from his role as New York's top financial regulator in late June to start his own legal and consulting firm, The New York Times reported Wednesday, citing people briefed on...
Financial Times  May 18  Comment 
Ahab agrees plan with leading parties including StanChart and BNP Paribas over $6.4bn debt
The Economic Times  May 14  Comment 
"Looking at it from a long-term perspective, we would only be using this correction to buy rather than trying to chase shorter-term rallies in other markets."
Reuters  May 14  Comment 
Standard Chartered plc is seeking buyers for its Hong Kong pension business valued at about $350 million in a deal that would also involve a 15-year distribution agreement with the new owner, people with knowledge of the matter told Reuters.
Financial Times  May 14  Comment 
Forbes  May 13  Comment 
Perhaps surpassed only by tax audits and root canals, blood draws can be a dreaded procedure, especially for the needle phobic. However, a new needle-free technology that leverages capillary action has the potential to revolutionize the blood draw...
The Australian  May 13  Comment 
SurfStitch is betting more than $21 million on the Magicseaweed and Stab Magazine websites, hoping to increase its retail sales.
Financial Times  May 6  Comment 
Bank wins support from majority of shareholders on all motions at annual meeting
guardian.co.uk  May 6  Comment 
Chairman Sir John Peace says bank will study environmental credentials of Carmichael mine, which campaigners say threatens Great Barrier Reef The chairman of Standard Chartered has said the bank will review its involvement in a controversial...
Yahoo  May 6  Comment 
Standard Chartered Chairman John Peace told investors on Wednesday the Asia-focused bank had "no current plans to move" but was keeping its domicile under review. Rival HSBC (HSBA.L) is formally reviewing the best place for its HQ and will decide...
newratings.com  May 5  Comment 
LONDON (dpa-AFX) - British lender Standard Chartered plc (SCBFF, STAC.L, STAN.L) confirmed Wednesday that Bill Winters will be appointed to the Board as Group Chief Executive on June 10, 2015. Winters joined the Group on May 1, 2015. This is...


Standard Chartered (LON:STAN) is a bank and financial holding company focused on the Asian, African and Middle Eastern markets. The company offers a range of financial services via its subsidiaries and had $437 billion in total assets at the end of 2009.[1] Its revenues come from 3 main sources: a) interest on loans provided; b) fees for services rendered; and c) trading income. In 2009, Standard Chartered had net interest income of $7.62 billion, service fee income of $3.37 billion and trading income of $2.89 billion[2] The company's single biggest business is consumer banking in Hong Kong, while its largest regional operation is in India, where 83 branches and 18,000 employees make it the largest foreign bank in the country.[3] Standard Chartered has consistently been ranked among the top FTSE 100 companies by market capitalization and is currently listed on both the London Stock Exchange and Hong Kong Stock Exchange.[4]

In May 2007, the company launched Standard Chartered Private Bank headquartered in Singapore.[5] In its first 15 months, it managed to reach $35.0 billion in assets under management (AUM) across 19,000 customer accounts and, in July 2008, was named the Global Best Private Bank by Euromoney.[6][7] Because Standard Chartered operates primarily in emerging markets, it has remained relatively untouched by the credit crunch and financial crisis that affected many of its American and European competitors.

Company Overview

Although Standard Chartered's global headquarters are in London, it operates internationally and focuses heavily on Asia, Africa and the Middle East. The company provides corporate and institutional clients with services in trade finance, cash management, lending, foreign exchange and corporate finance. For individual clients, it offers a range of products and services, such as credit cards, personal loans, mortgages, deposit taking and wealth management.

On February 29, 2008, Standard Chartered completed the acquisition of American Express Bank, a former subsidiary of the American Express Company, for $823 million.[8] Other acquisitions since July of 2007 include Pembroke Group (an aviation finance specialist based in Ireland), Harrison Lovegrove (an oil and gas M&A advisory boutique based in England), South Korea's Yeahreum Mutual Savings Bank, A Brain Co. (a fund administration company based in South Korea), UTI Securities (a brokerage and advisory firm based in India), Hsinchu International Bank (a bank in Taiwan) and Asia Trust International Corporation (a bank in Taiwan).[9]

Business and Financial Metrics

In 2009, Standard Chartered made $7.62 billion in net interest income and $7.56 billion in net non-interest income for a total of $15.2 billion in operating income.[2] Profit for the year was $3.5 billion[2] Most of the gains in profit were attributable to increases in net service fee income as well as trading income.

Standard Chartered PLC 2005 2006[10] 2007[10] 2008[2] 2009[2]
Net Interest Income (In Millions)4,3355,3286,2657,3877,623
Net Non-interest Income (In Millions)2,5263,2924,8026,5817,561
Operating Income (In Millions)6,8618,62011,06713,96815,184
Operating Expense (In Millions)3,8114,7966,2157,6117,952
Other Expenses (In Millions)3696468171,7902,081
Net Income (In Millions)2,6813,1784,0354,5685,151

Business Segments

Standard Chartered divides its operations into two segments: a) Wholesale Banking; and b) Consumer Banking.

Wholesale Banking

Wholesale Banking offers three product groups: i) Lending and Portfolio Management; ii) Global Markets; and iii) Transaction Banking. In 2009, the Wholesale Banking segment made $9.3 billion in operating income and a net income of $4.1 billion.[11] The largest contributor to the increase in income was the Global Markets segment, with its income increasing $1.6 billion in 2009. The Global Markets segment was able to increase income significantly due mostly to its sales and trading team which earned $946 million more in 2009.[11]

Consumer Banking

The Consumer Banking segment offers three product groups: i) Credit Cards, Personal Loans and Unsecured Lending; ii) Wealth Management and Deposits; and iii) Mortgages and Auto Finance. In 2009, the Consumer Banking segment made $5.63 billion in operating income and $867 million in net income, compared to $6.0 billion and $1.1 billion respectively.[12] These declines were partially attributed to a $557 million decline in its Wealth Management and Deposits subsegment as a result of lower demand for wealth management products combined with lower returns on deposits from low interest rates.[13]

Key Trends and Forces

Asset-backed securities represents less than 1%of the company's total assets[14]

In 2009, Standard Chartered's portfolio of asset-backed securities, including mortgage-backed securities, amounted to less than 1% of the company's total assets. Furthermore, Standard Chartered has no exposure to the U.S. subprime market. As a result, Standard Chartered was largely unaffected by the subprime lending market downturn that led to the credit crunch and financial crisis. However, in spite of the conservative balance sheet, Standard Chartered wrote down $102 million in impairment charges related to asset backed securities.[15]

80% of profits come from Wholesale Banking

During 2009, the Wholesale banking segment earned $4.1 billion in operating income, representing approximately 80% of the entire company's profits.[11] However, the company states that much of its deposits come from clients in their Consumer Banking segment. As a result, the earnings of the Wholesale Banking segment rely in part on the steady source of deposits from the Consumer Banking segment. As such, the low earnings of the Consumer Banking segment may not accurately reflect the true value it is adding to Standard Chartered.

The company's Private Bank is an organic growth driver

In May 2007, Standard Chartered started its Private Bank headquartered in Singapore. By December 2007, the Private Bank had $10 billion in assets under management (AUM) in 7 market areas.[16] Notably, 28% of this $10 billion in AUM came from 1,300 new clients.[17] By July 2008, the Private Bank had $35 billion in AUM in 17 market areas, largely due to the acquisition of American Express Bank.[18] The Private Bank was also named Global Best Private Bank by Euromoney for its performance in 2007/08.[7]

The company is aggressively hiring while its competitors layoff thousands

In March 2009, Standard Chartered said that it had no plans to cut jobs, even as competitors like HSBC Holdings and Barclays cut their headcounts by 6,100 and 4,500 respectively.[19] Instead, the company announced that it would be hiring aggressively, noting that a particular focus would be relationship managers for its Private Bank.[20] Due largely to its circumvention of the subprime lending debacle, credit crunch and financial crisis that forced many of its competitors to writedown toxic assets from their balance sheets, Standard Chartered became England's largest bank by market cap in March 2009.[19]


Since Standard Chartered operates in over 70 countries across 7 continents, it has a long list of competitors in each region. However, given that the company focuses on the Asian, African and Middle Eastern markets a few large international competitors, including Citigroup (C), HSBC Holdings (HBC), and J P Morgan Chase (JPM) compete with it in these regions.


  1. STAN Annual Report 2009 Pg. 2
  2. 2.0 2.1 2.2 2.3 2.4 STAN Annual Report 2009 Pg. 112
  3. STAN Annual Report 2007 Pg. 7
  4. "Business & Strategy", Standard Chartered Website
  5. "StanChart Singapore move", The Hong Kong Standard
  6. STAN Interim Report 2008 Pg. 4
  7. 7.0 7.1 "The Standard Chartered Private Bank named Global Best Private Bank", Standard Chartered Website
  8. "American Express Company completes sale of American Express Bank Ltd to Standard Chartered Plc", American Express Company Website
  9. STAN Annual Report 2007 Pg. 19
  10. 10.0 10.1 STAN Annual Report 2007 Pg. 13
  11. 11.0 11.1 11.2 STAN 2009 Annual Report Pg. 32
  12. STAN Annual Report 2009 Pg. 24
  13. STAN Annual Report 2009 Pg. 26
  14. STAN 2009 Annual Report Pg. 45
  15. STAN 2009 Annual Report Pg. 19
  16. STAN 2007 Annual Report Pg. 8
  17. STAN Annual Report 2007 Pg. 8
  18. "The 2008 Guide to Private Banking and Wealth Management", Euromoney.
  19. 19.0 19.1 "Standard Chartered Had ‘Strong’ First Two Months", Bloomberg
  20. "Standard Chartered To Hire More Staff As Competitors Retrench", Bloomberg
  21. HSBC Posts Lower-Than-Estimated 2009 Profit on Europe. Jon Menon and Andrew MacAskill. Bloomberg.
  22. 22.0 22.1 FDIC Summary of Deposits: June 30, 2009

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