SHARES jumped in British bank Standard Chartered yesterday, as it revealed its final fine for breaking US sanctions against Iran will be smaller than previously feared.
It expects to pay $330m (£205.6m) to regulatory authorities including the Federal Reserve, the Department of Justice, the Treasury department and the local district attorney.
That takes Standard Chartered’s total bill to $670m, as it paid the New York department of financial services (DFS) $340m in a shock announcement in August. The bank will take the hit in its March results.
When the initial fine from the DFS was announced the bank’s share price plummeted by 24 per cent.
But shares have recovered most of the lost value, and yesterday the price jumped 2.4 per cent on the latest fine update, before easing back to end the day up 0.81 per cent at 1,500.50p.
“We believe this [fine] is at the low end of market expectations and should allay fears of further litigation with regards to breach of US sanctions,” said analyst Shailesh Raikundlia from Espirito Santo.
Standard Chartered’s update was largely positive on the bank’s outlook, noting “income for the year is expected to be up by a high single digit rate,” with the consumer and wholesale arms recording growth. “Expenses continue to be managed tightly and as a result income growth is expected to be ahead of cost growth for the full year even after the settlement with the NY DFS,” the bank added.