Standard Chartered maintains its 2014 full year dividend

DividendMax Ltd.

Standard Chartered maintains its 2014 full year dividend

Standard Chartered PLC - Highlights

For the year ended 31 December 2014

Reported results

Operating income of $18,234 million is down 2 per cent from 2013

Profit before tax of $5,193 million is down 25 per cent from 2013

Customer advances down 3 per cent to $289 billion, customer deposits up 6 per cent to $414 billion

Performance metrics

Dividend per share at 86.00 cents per share, the same level as 2013

Normalised earnings per share declined 28 per cent to 145.9 cents from 204.0 cents in 2013

Normalised return on ordinary shareholders' equity of 7.8 per cent (2013: 11.2 per cent)

Capital and liquidity metrics

Common Equity Tier 1 (CET 1) of 10.7 per cent on an end point basis under CRD IV rules5, 10.5 per cent on a transitional basis

Advances-to-deposits ratio of 69.7 per cent (2013: 75.7 per cent)

Liquid asset ratio of 32.2 per cent (2013: 29.8 per cent)

Key messages

2014 performance impacted by the challenging market environment, de-risking and disposal actions

Loan impairment increased 32 per cent primarily in Corporate and Institutional and Commercial Clients

Reallocated $8.5 billion risk weighted assets from low returning relationships and announced 15 business disposals

Strong balance sheet with healthy liquidity, leverage, and capital ratios

Programme of actions

Significant leadership changes

CET1 target of 11-12 per cent in 2015 and thereafter

Return on Equity target greater than 10 per cent in the medium term

$1.8 billion of cost savings over the next 3 years

$25 - $30 billion in Risk Weighted Assets savings over the next 2 years

Sustain momentum on raising the bar on conduct

Commenting on these results, the Chairman of Standard Chartered PLC, Sir John Peace, said:

"2014 was a challenging year and our performance was disappointing, but it was also a year when we took decisive action to refocus our strategy and to reposition the Group for the future and to restore shareholder value."

Commenting on these results, the Chief Executive Officer of Standard Chartered PLC, Peter Sands, said:

"We are reshaping the Bank to respond to the way our world has changed and to ensure we fulfil our aspiration to bank the people and companies driving trade, investment and the creation of wealth across Asia, Africa and the Middle East. I leave Standard Chartered proud of what we have achieved and confident about what the future holds for this extraordinary institution"

Companies mentioned