The Standard Chartered Board has declared a final ordinary dividend of 20 cents per share, which would result in a full-year dividend for 2019 of $863 million or 27 cents per share, a 29 per cent improvement on 2018.
This return to shareholders is in addition to the $1 billion of surplus capital that is used to buy and cancel existing ordinary shares last year. And with common equity tier 1 capital ratio back near the top end of a 13-14 per cent target range, they have announced the decision to purchase a further $0.5 billion worth of ordinary shares starting shortly.
Other financial highlights include:
Return on tangible equity up 130bps to 6.4%
o Underlying profit before tax up 8% to $4.2bn
o Statutory profit before tax up 46% to $3.7bn
Income up 2% to $15.3bn; up 4% on a constant currency basis
o Up 5% at constant currency excluding $(177)m movement in Debit Valuation Adjustment (DVA)
o 4Q'19 income flat YoY; up 1% at constant currency and up 4% excluding $(118)m movement in DVA
o 4Q'19 momentum continued into January 2020
Costs (excluding the UK bank levy) down 1% at $10.1bn; up 1% on a constant currency basis
o Positive income-to-cost jaws of 3%; cost-to-income ratio (excluding UK bank levy) improved 2% to 66%
Capital
o Common equity tier 1 ratio remains within 13-14% target range at 13.8%: up 28bps since 3Q'19
o Proposed $0.5bn share buy-back will reduce the CET1 ratio by ~20bps
o Risk-weighted assets of $264bn up $6bn or 2%; down $5bn since 3Q'19
