StanChart calls on investors to focus on profits

Tim Wallace
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STANDARD Chartered yesterday tried to move markets on from last month’s sanction-breaking fine, instead calling on investors to focus on the bank’s underlying earnings.

The bank’s share price plummeted by almost a quarter in August when a US regulator accused it of breaking the rules in $250bn (£153.8bn) of transactions with Iran – an accusation Standard Chartered denied, and paid $340m to settle.

Its shares have since recovered much of that lost value, but remain roughly four per cent below their preclaim level.

The investor day focused on continued growth in developing economies – Standard Chartered is focused in Asia, with extensive operations in Africa and the Middle East.

As a result, Standard Chartered expects its core wholesale banking profits to double from the current $5.2bn over the next five years.

“It is not unreasonable for us to be looking at a $10bn operating profit in 2016,” said wholesale banking boss Mike Rees.