StanChart to settle US claims with 330m-pound fine - UPDATE

B.C. | ShareCast | 06 Dec, 2012 09:13 - Updated: 12:20 | | |

Standard Chartered

Emerging markets bank Standard Chartered said it is in on track to deliver another strong set of full-year results this year as it reiterated that it is near to settling claims over Iran-linked transactions with US authorities.

Following a payment of $340m made to the New York State Department of Financial Services in August, relating to the breach of US sanctions and hiding of financial transactions with Iran, StanChart reckons that the conclusion of the investigation will result in another fine of around $330m "very shortly".

As for the group's trading performance this year, the bank said that income growth is expected to be in the high single digits, up by a double-digit rate on a constant currency basis.

The company said that a number of markets have shown strong performances in 2012, with Africa, the Americas, UK, Europe, Malaysia, China and Indonesia expected to all grow income at double-digit rates. The group's largest geography, Hong Kong, is forecast for high single-digit income growth.

Chief Executive Peter Sands said: "We continue to focus on the basics of banking, on maintaining a very strong and conservatively positioned balance sheet, and on the disciplined execution of our strategy. We continue to see significant opportunities across our markets in Asia, Africa and the Middle East." 

Consumer Banking income is expected to rise at a mid single-digit rate, while Wholesale Banking income growth will be in the high single digits.

According to analyst Ian Gordon from Investec, today's update suggests a full-year group reported income of $19.3bn, up 9% year-on-year.

Keeping his 'buy' recommendation on the stock, Gordon said: "We expect the actual 2012e outturn to beat current consensus on every line - income, costs, impairments and underlying profit before tax."

More news

10:13 Profits fizz at takeover target Spirit despite tough summer

A strong performance by its managed pubs arm frothed up annual profits at takeover target Spirit Pub Company despite mixed summer weather and higher costs.

10:07 Market overview: MPC decided to maintain rates by 7 to 2 vote

0935: The MPC minutes seem to emphasise the lack of inflationary pressures in the British economy. The most important passage seems to be the following: “While it was appropriate for policy to look through the near-term effects of lower import prices on CPI inflation when indicators of cost and price pressures remained consistent with inflation returning to the target in the medium term, CPI inflation had fallen relative to an already weak outlook.”

10:04 Wednesday broker round-up

Amino Technologies: N+1 Singer moves target price from 93p to 107p upgrading to buy.

10:03 MPC minutes emphasise lack of inflationary pressures

As anticipated by economists, the minutes of the 7 to 8 October meeting of the Monetary Policy Committee (MPC) revealed that the decision to maintain Bank Rate and the current size of the Bank’s bond purchase programme was taken by a majority of seven votes to two.

10:00 Computacenter reports mixed third quarter

IT infrastructure services provider Computacenter reported a 3% decline in third quarter revenue, but said its full year outlook remained in line with previous expectations.

09:51 Shell strikes gas off west African coast

Oil & gas major Royal Dutch Shell has announced a "substantial" gas strike off the coast of west Africa at a majority-owned well.

09:51 Former Co-op boss to become Supergroup chief executive, shares drop

The former chief executive of the troubled Co-operative group is to become the new boss of fashion retailer Supergroup.

09:32 Playtech to beat forecasts after bumper Q3 continues in Q4

After a powerful performance in the third quarter continued into the fourth, Playtech said it was confident of beating market expectations for the full year.

09:29 MPC voted 7-2 to maintain rates at last meeting, as expected, minutes show

09:22 Bonds: Italian long-term Treasuries outperform on ECB speculation

Sovereign bonds recorded sharp gains on Tuesday following a Reuters report that corporate bond purchases were under consideration by the European Central Bank.

Advertising

HIGHLIGHTS

Ebola latest: Spanish nurse now 'cured' of virus after second test

Welcome to our rolling coverage of the Ebola crisis.

VIDEOS

EUR/USD: continues its clearly bearish trend
REGISTER NOW!