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Standard Chartered (STAN) final results

Practical discussions about equity High-Yield Portfolios (HYP) for income
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Lemon Slice
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Standard Chartered (STAN) final results


Postby mike » February 24th, 2017, 9:00 pm

2016 results are here - ... 35037711X/

For us, the main paragraph of interest is -

The Board has decided that it would be in the Group's best interests not to declare a dividend on Ordinary Shares for 2016. The Board believes in balancing returns to shareholders with investment to support future growth, while at the same time preserving strong capital ratios. While the Group has made good progress on the actions that we believe will drive a sustainable improvement in financial returns, the turnaround of the profitability of the Group is at a relatively early stage and a number of economic and regulatory uncertainties remain. The Board recognises the importance of dividends to shareholders and will keep the matter under close review.

Another disappointment after PSON & COB recently, and probably IRV next week, especially as 12 months ago the following was stated after STAN did not pay a final dividend for 2015 (they had paid an interim)

The Board recognises the importance of dividends to shareholders, and believes in balancing returns with investment in the franchise to support future growth, while preserving strong capital ratios. The size of any future ordinary dividends will be a function of future earnings and our capital position relative to regulatory and market expectations. Subject to these factors, the Board intends to declare a dividend on Ordinary Shares in respect of the 2016 financial year.

(from 2015 results - ... 15028453P/)

Vive la diversification !

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Re: Standard Chartered (STAN) final results


Postby moorfield » February 24th, 2017, 9:58 pm

mike wrote:
Another disappointment

Not for me. Meanwhile the preference shares (STAC) yield 6.1% and my dividend from those continues to motor along and be reinvested.

I guess I've just pinched your lunch - sorry about that ;)

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Re: Standard Chartered (STAN) final results


Postby Wizard » February 25th, 2017, 8:55 am

I wonder whether it is that the PRA has suggested the Board may want to hold back on paying a dividend.


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Re: Standard Chartered (STAN) final results


Postby ADrunkenMarcus » February 25th, 2017, 11:20 am

Given they had a large rights issue at the end of 2015, I don't see any problem with them not paying a dividend for 2016. It would have been a token one in any case. The key is to get the bank on the mend, including the necessary investment in the future. Paying a dividend would be something of taking with one hand and giving some back with the other.

I remember when Barclays had a rights issue in 2013 and they maintained the dividend per share at the same level, which resulted in something like a 25 percent increase in what they were having to pay as a dividend, given the additional number of shares in issue. As a sweetener, they promised an increased payout ratio from 2014 of 40-50 percent (only to miss the target). And then, of course, they cut the dividend from 6.5p to 3p for 2016 and 2017 before promising 'jam tomorrow'.

Best wishes


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