Iain Dey of The Sunday Times writes today that, purely on the numbers, Standard Chartered stock is now worth buying. Shares have fallen 21% in the past year, but at 12 times next years forecast profits are in line with the average European bank. Domestic banks in India and Malaysia command a higher premium, despite Standards strong past record in Asia. In addition, while banks such as Lloyds are still waiting for permission to pay a post-crisis dividend, Standard offers a yield worth more than 4%. Although profits are down on last year, the bank still posted pre-tax profit of $3.3bn in the first-half. Dey notes that close watchers of Standard are aware of signs of rising bad debts, and adds that the banks problems with US authorities prompt worries of lax controls or institutional arrogance. He concludes that the shares are worth picking up, though warns that a mending of relations with the City will be required to push the share price higher.
Posted on: Sun, 10 Aug 2014 09:32:47 +0000
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