Standard Chartered

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As of 21:11 20 Mar 2019
Market cap. Pound sterling
20,148.82 million
As of 21:11 20 Mar 2019

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Standard Chartered profits surge

Standard Chartered
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Standard Chartered's pre-tax profit surged to $3.9bn (£3bn) in 2018, the bank said in a Tuesday filing in Hong Kong, up 27% on the previous year's result.

Last week the bank said it had put aside $900m to deal with regulatory probes in the UK and US. It was the first time it had put a figure on the penalties and an attempt to draw a line under the issue.

It means its latest profit figure drops to $2.5bn "after provision for regulatory matters and restructuring and other items" are taken out, a rise of 5.5% on 2017's results.

Do fines matter?

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Do fines on banks make difference?

Standard Chartered has said overnight that it is setting aside $900m for fines while UBS was yesterday fined €3.7bn in a tax fraud case (which it is contesting).

Ritu Vohora, investment director at M&G, told BBC Radio 4's Today Programme that one of the issues these raised was "we still need better regulation".

"The question here is ... do these fines really change the cost of doing business for these banks and if it's not significant enough it's business as usual for them," she said.

Standard Chartered penalities

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Standard Chartered is putting aside $900m (£690m) to cover fines from financial regulators.

The bank, which is listed in London but conducts most of its business outside the UK, said the sum was to cover investigations into breaches of US sanctions, foreign exchange trading and a £102.2m fine from the UK's Financial Conduct Authority.

The FCA fine related to financial historical financial crime controls and the bank said it was considering its options.

In October when it published its third quarter results it had warned of the possibility of "a substantial financial impact" from ongoing investigations by the US and UK regulators.

It has warned about these investigations on a number of occasions and says "concluding these historical matters ... remains a focus of the group".

Its full year results are due on Tuesday.

Davos: China in focus

Microsoft chief executive Satya Nadella
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This morning at the World Economic Forum in Davos, China is under the microscope.

Daniel Zhang, chief executive of Alibaba, is taking part in a session looking at consumption and transformation of digital retail in China and the rest of the world.

China remains front and centre in a discussion about whether the country will be shaping the next phase of globalisation. Bill Winters, chief executive at Standard Chartered Bank, will be part of that panel.

And just as Microsoft's Bing search engine stops working in China, chief executive Satya Nadella will helm a conversation about "Digital Trust and Transformation".

Bank of England Governor Mark Carney
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Meanwhile this afternoon, Bank of England Governor Mark Carney will be talking about "Resetting Financial Governance" since the financial crisis while Barclays chief executive Jes Staley will hold a session on "Europe after Brexit".

Monitoring of Standard Chartered to end

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US regulators will stop monitoring Standard Chartered next month, bringing to an end one strand of the bank’s punishment for past compliance failings.

The bank agreed to the supervision with New York regulators in 2012 as part of a wider settlement in relation to its dealings with Iran-related entities.

However, Standard Chartered still faces a separate investigation by US authorities into the extent to which it allowed clients with Iranian interests to conduct transactions after 2007, as well as the extent to which it shared such dealings with authorities at the time of the 2012 settlement.

Reports in October said the bank could face a further $1.5bn fine for those violations, in addition to the $667m it paid in 2012 to settle alleged breaches between 2001 and 2007.

Bit more on Standard Chartered

Standard Chartered's finance director Andy Halford has said the bank will continue its application for a banking licence in Saudi Arabia despite the murder of the journalist Jamal Khashoggi.

“We have taken account of recent events, but conversely this is about running a business for the long term and that process will continue," he told reporters.

Standard Chartered warning

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Standard Chartered, the London-listed bank with almost all its business outside the UK, has warned about the impact of trade wars on its business.

"Escalating trade tension and other macroeconomic factors are affecting sentiment in emerging markets," the bank said in its third quarter results.

There is another warning too: the possibility of "a substantial financial impact" from ongoing investigations by the US and UK regulators.

The American probe relates to historical violations of US sanctions laws and regulations, and the one with the Financial Conduct Authority is about financial crime controls.

It has warned about these investigations on a number of occasions and says "concluding these historical matters ... remains a focus of the group".

Profits for the nine months to September were up 35% to $3.4bn.

Shares are 4.4% higher at 556p in morning trading.

Standard Chartered avoids trade row fall-out

US-China trade war: Why you should care

Standard Chartered does not expect the trade row between the US and China to have much impact on the Asia-facing bank...for now.

Announcing its interim results, Standard Chartered's chief executive Bill Winters said: "Our direct exposure to increasing tariffs between the US and China is minimal, less than 1% of income.

"It's not a disastrous thing for Standard Chartered ... but if the trade war escalates it could be more disruptive for the global economy and our clients."