StanChart lowers 2020 income growth target due to coronavirus

Thursday 27 February 2020 14:17 CET | News

UK-based bank Standard Chartered has warned that the COVID-19 outbreak might undershoot its previous target of 5-7% growth in 2020.

Standard Chartered’s operating income growth is set to be lower than expected this year due to the impact of the coronavirus in some of its biggest markets, as well as an economic slowdown and months of protests in Hong Kong. Progress towards a return on tangible equity — a measure of banking profitability — of 10% would also be delayed, the bank said as it announced financial results for 2019. 

Underlying pre-tax profits at the lender grew 8% to USD 4.17 billion during the year, short of analysts’ estimates of USD 4.45 billion. Operating income for the year was in line with analyst forecasts, rising 4% to USD 15.42 billion. Despite unrest in the city, profit before tax from Hong Kong grew 4% year on year to USD 1.7 billion. 

One of Hong Kong’s largest retail banks, StanChart announced relief measures on February 12 2020 to soften the impact of the coronavirus on its customers in the city, including trade finance loan extensions and fee waivers. StanChart also increased its sustainability targets. It aims to fund USD 35 billion of renewable energy projects between 2020 and 2024.

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Keywords: Standard Chartered, COVID-19, coronavirus, income growth target, economic forecast, Asia, China, Hong Kong, APAC, bank, online banking,
Categories: Banking & Fintech | Payments General
Countries: Asia
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Banking & Fintech