Standard Chartered FY2019 underlying pre-tax profits rise by 8% to $4.17bn, just missing forecasts.
But the results are overshadowed by coronavirus concerns for the current fiscal.
Specifically, Standard Chartered says that FY2020 income growth will be less than targeted due to the impact of the virus.
UK-headquartered Standard Chartered’s business is focused in Asia, Africa and the Middle East.
Moreover, the bank says it will delay its target to hit a targeted return on tangible equity of 10%. In fiscal 2019 the return on tangible equity improves by 130 basis points to 6.4%.
“We are in the right markets guided by the right strategy and united to drive commerce and prosperity. I am confident that we have set ourselves up for lasting success,” says Bill Winters, Group Chief Executive
Standard Chartered FY2019 highlights
Statutory profit before tax rises by 46% year-over-year to $3.7bn. Meantime, income is up by 2% to $15.3bn and ahead by 4% on a constant currency basis.
Income from corporate and institutional clients using the bank’s international network rises by 6%. At the same time income from Premium, Priority and Private Banking clients is also up by 6%. Productivity gains result in a 5% rise in income per full-time employee.
Other highlights include a much needed drop in the Standard Chartered cost-income ratio.
This is down by 180 basis points on an underlying basis to 65.9%.
On the other hand, less positive metrics include evidence of ongoing margin pressure.
For example, the bank’s group wide net interest margin for fiscal 2019 drops by 7 basis points to 1.62%.
Retail Products income rises by 3% or 5% per on a constant currency basis. This is driven by continued growth in deposits from improved margins and increased volumes. But it is also partly offset by margin compression in mortgages and credit cards and personal Loans.
Wealth Management income rises by 4% despite more challenging market conditions. This is primarily from growth in FX, fixed income and structured products.