Standard Chartered Initiates USD1 Billion Share Buyback Program

Standard Chartered PLC, a prominent bank based in London with a significant market presence in Asia, has recently embarked on a share buyback initiative. The financial institution has set plans in motion to repurchase up to USD1 billion worth of shares. The primary objective of this share buyback program is to decrease the number of outstanding shares, with the undertaking set to conclude by August 23.

Backstory of the Buyback

The decision to launch the buyback was disclosed the previous Friday, coinciding with the publication of the bank's full-year financial results. Standard Chartered expressed its intention to distribute 'at least' USD5 billion to its shareholders over the span of three years, from 2024 to 2026.

Financial Performance Highlights

For the year 2023, Standard Chartered reported a notable increase in operating income, which surged by 10% to reach USD18.02 billion, up from USD16.32 billion from the previous year. The net interest income saw a modest rise of 2.4%, going from USD7.59 billion to USD7.77 billion. More significant growth was observed in the bank's non-net interest income, which leaped by 17% to hit USD10.25 billion, compared to USD8.73 billion a year prior.

The bank's pretax profits witnessed an ascent of 19%, arriving at USD5.09 billion from the preceding year's USD4.29 billion. However, this figure fell narrowly short of the consensus forecast of USD5.12 billion compiled by the company. The net interest margin was reported at 1.67%, just slightly above the consensus estimates of 1.66% and showing improvement from 1.41% in the year 2022. The underlying return on tangible equity for the bank also improved, moving up to 10.1% from the earlier 7.7%.

Current Market Standing

With regards to the bank's stock performance, the current price stands at 649.20 pence, marking a 2.2% increase on a recent Monday. A retrospective view over the last 12 months, however, shows a downward trend, with the value having dropped by 18%.

buyback, shares, banking