SCB, Your CCB Bank ;)

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[h=1]StanChart Korea faces uncertainty to future of operations [/h]Standard Chartered Bank Korea (SCBK) faces an uncertain future because its parent company plans to turn around its retail and commercial banking businesses by cutting non-core ones, a global credit ratings agency said Tuesday.

Moody's Investors Service said it has placed on review for downgrade the long-term and short-term ratings of the local unit of the London-based banking group because Standard Chartered Bank (SCB) plans to exit the Korean affiliate's non-strategic businesses and low-returning client relationships.

"Moody's notes that SCB's plan to turn around its poorly performing Korean retail and commercial banking businesses, announced in its global strategy view on November 3, introduces some uncertainty as to the future of SCBK's operations," Moody's said.

The report came a week after Standard Chartered Bank announced its new strategy to create a lean, focused and more profitable bank. The U.K. banking group said it will take all measures to turn around its Korean businesses, including improving returns on and liquidating assets in Goldman Sachs Asset Management, which are beyond its new risk tolerances.

Standard Chartered Bank Korea posted a 111.5 billion won net profit in the first half of this year, from a 22.5 billion won net loss a year ago, according to data from the Financial Supervisory Service. It had a 64.6 billion won net loss in 2014. SCBK is based in Seoul and had assets of 61.7 trillion won as of June.

Standard Chartered Bank said it will cut 15,000 jobs by 2018 to simplify its structure. Its Korean unit also plans to follow by running an early retirement program. Standard Chartered Bank Korea is negotiating with its labor union.

The local unit also agreed last month with its union to adopt a wage peak system from January, cutting salaries of employees aged 56 and over. Korea's legal retirement age is 60.

Introducing a wage peak system is one of the key labor policies of the Park Geun-hye administration that aims to create more jobs for young people. But it has faced a strong backlash from labor unions, which accuse it of "stealing a father's job for a son."

Market watchers said Standard Chartered Bank is pressuring affiliates to be profitable to overcome its poor performance. The bank said it posted a pre-tax loss of $139 million in the third quarter.

"Standard Chartered Bank's efforts to be profitable will be made globally, applying to all the markets," said an industry source.

 

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[h=1]Standard Chartered cuts Dubai sales and trading jobs [/h]Standard Chartered cut 11 sales and trading jobs in Dubai, including four managing director roles, according to two people with knowledge of the matter.

Bloomberg News reports that Standard Chartered has 'acted to reduce management layers at a global level, and as a result, will have up to 25% fewer senior staff', the bank said in e-mailed response to questions Tuesday. The group’s new structure will be effective from January 1 and 'changes are still work in progress, we are not in a position to provide details', it said.
Bloomberg reported earlier this month that the bank unveiled 15,000 job losses to help save $2.9 billion by 2018.


Standard Chartered will also restructure or exit $100 billion of assets after it reported an unexpected third-quarter loss of $139 million, compared with a profit of $1.5 billion a year earlier.

 

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[h=1]Bill Winters purchases Standard Chartered shares worth £1m[/h][h=1]U.S. Justice announces Standard Chartered reaches resolution under Swiss bank program[/h][h=1]Stranded Chartered?[/h]For Standard Chartered bank at 600p (last seen) the Sands of time run out as Winter arrives. Are things as bad as they look or is this really the bottom?

This has been the fortnight of Asian bank reporting. We have just had the third quarter results from HSBC (HSBA) which were well received by a highly rated stock market on the lookout for lowly rated recovery shares. So will it be a similar story for Standard Chartered (STAN)?
Like HSBC, the story of Standard Chartered over the last year or so has been one of ‘hubble, bubble, toil and trouble’. The fall was greater for Standard Chartered because it had started out with a share price that stood at a handsome premium to the bank’s net equity assets, which reflected the bank’s former scarcity value for profits growth linked to the economic rise of China.
When problems came, they were made worse by the bank’s comparatively and absolutely poor communications with investors and the market generally and its strikingly different quality of reporting – which served more to obscure than delineate – in comparison to other banks, particularly HSBC. That heightened mistrust between management and market heaping uncertainty on operating disappointment. Was the bank’s obscurantism in place to hide the facts or simply because the management did not have a sufficiently firm grip on them – or both?


Management change

Last year, the former CEO, Peter Sands, saw his reputation and influence go down with the setting sun over the bank’s immediate prospects. The resignation of Mr. Sands and the appointment of Bill Winters have marked the ending of one management era and the beginning of another. The management sentiment slate has been wiped clean.
New CEOS are generally good for the share price of the companies they come to manage in such circumstances, not merely because ill will towards their predecessor is turned into goodwill towards the succeeding CEO, but also because the incoming man can freely take actions which damage near term equity earnings prospects, because such action can be pinned on the outgoing man. That means successors have the scope to overdo their diagnosis and medicine in the expectation of enhancing the prospects, for which they themselves, will most certainly be held to account. That particular clock of accountability will start ticking for Bill Winters’ stewardship next year – the year to December 2016.
Before leaving history behind, I observe that the retiring Peter Sands had overseen some significant and beneficial work in improving things. The accounts for the year to December 31[SUP]st[/SUP] 2014 showed that operating cash last December 31[SUP]st[/SUP] had risen almost six fold, to $55.5 billion from $9.4 billion the year before. That made a considerable contribution to the related increase of some 60% in the year-end cash to $52 billion. Moreover, the programme of change to take the bank out of capital hungry, low return businesses had begun early this year – a policy which has been continued under the new CEO Bill Winter.

The latest results

Over the nine months to 30[SUP]th[/SUP] September last, top line income fell nearly 12% but operating expenses also fell, by 4% from $7 billion to $6.8 billion. True to the times, regulatory costs over those nine months jumped 43% to $690 million – an amount that represented one tenth of the cost of operating the business. In the event, operating profit in the first nine months of this year tumbled 25% in comparison with the reported operating profit figure the year before.
The third quarter made a particularly emphatic contribution to the nine month total. In the three months to 30[SUP]th[/SUP] September, operating profit was shown as 60% down year on year; bad and doubtful debts were up by 129% that quarter. Was this a case of some really bad lending gone sour or more a case of everything being chucked into the bad debt account, including the ‘kitchen sink’ by the new executive management as a means of underwriting the absolute and relative performance at some future date, when perhaps any ultra-conservative provisioning can be brought back?
There is also the sound of ‘stable doors being bolted’ with an announcement that banking exposure to commodities had been reduced one fifth and exposure to China reduced by 15%. It is a particularly gloomy analysis and forecast that envisages a Q3 result next year being as grim and draconian as those of the last three months. Clearly, much has been done in terms of remedying exposure to damaging things and events, to shift the betting odds in favour of a comparatively better result in the third quarter of next year. Whereas bad and doubtful debts rose by the precise sounding 129% in the third quarter just reported, they rose 108% for the nine months as a whole.

New capital

The announcement of an equity funding was the fulfilment of long anticipation, which is good psychologically and good financially. The $5.1 billion dollars raised (net of expenses) improves the bank’s capital and reduces the uncertainty about whether Standard Chartered has enough capital to withstand such losses and satisfy banking regulatory requirements. We are told, specifically, that the impact of the new equity was to raise the bank’s capital ratio from 11.5% to 13.1% as at the 30[SUP]th[/SUP] of June 2015. Such action puts Standard Chartered at an advantage to many other banks who are struggling to improve capital ratios from cost cutting and a change in the mix of risk weighted assets etc. Standard Chartered has the benefit of more capital whilst still reforming and cutting its cost base, activities and risk weighted asset base.

Changes to the bank’s business mix

In that regard, we are told that the bank is to change the asset base to support lower capital intensive business and higher profits. That seems to mean providing fees based services for high net worth individuals and a reduction in some corporate lending, in relation to a reported one third of the bank’s total assets.


The bull case

However, there is a clear fundamental case to be made in favour of these shares at this point after a very long decline. It includes the following points:

• There are absolutely no profits to be taken in this share because it is now at its lowest point in price for five years. A long five years ago, the shares were priced at around 1,885p.
• The last June 30th balance sheet reported total assets of $695 billion, commanded by equity reported at a value of $49 billion. The latter looks to be at a considerable discount to an estimated dollar market capitalisation of the equity, which I estimate, on a 1.51 dollar / pound sterling exchange rate to be in the region of some $23 billion – on that basis, a discount of over 50%.
• As a bank that has been in business in Asia and Africa since the nineteenth century with a total asset value of a reported $695 billion, this bank has financial attractions. It is also potentially a takeover target, if in theory only – given the fact that most banks are contracting and ‘de-risking’ rather than expanding.
• The market consensus estimates a 50% fall in earnings this year to 46.4p, with a recovery of 24% (to 54.5p) next year putting the shares on prospective estimated price to earnings ratios of 13.5 and then 11.3 making next year’s forecast cheap in estimated PER terms in relation to estimated 2016 earnings growth in percentage terms.
• The dividend reduction fear has been addressed by the cutting of this year’s final dividend. The consensus dividend yield estimates are 3% for the year which closes at the end of next month and 3.6% for next year. A useful income in a deflationary world.

 

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[h=1]

RBS and Standard Chartered get wrists slapped by Bank of England after struggling to pass stress tests[/h][h=1]It's official – RBS and Standard Chartered are the UK's weakest banks[/h]Royal Bank of Scotland and Standard Chartered almost failed the Bank of England's 2015 stress tests.
Despite missing targets, the two banks had just enough emergency capital after being run through a hypothetical economic collapse by the UK's banking regulator.
The Prudential Regulation Authority, a unit of the Bank of England, said the banks won't have to ask investors for more money because they have plans to raise more capital are already underway.
Ewen Stevenson, chief financial officer of RBS, said: "We are pleased with the progress we have made relative to the 2014 stress test, but recognise we still have much to do to restore RBS to be a strong and resilient bank for our customers.
Bill Winters, CEO of Standard Chartered, said: "The test was conducted on our balance sheet as at the end of 2014. Since then we have made further significant progress in strengthening our capital position. We are operating at capital levels above current minimum regulatory requirements and have a number of additional levers at our disposal to further manage capital."
The other banks that took part – Barclays, HSBC, Santander, Lloyds and Nationwide – all passed the stability test, which examined how secure the banks are in the event of a Chinese economic collapse and global recession.
This is the Bank of England's second stress test. It's a tool used by regulators to see where problems could arise in the banking system and which banks are the most vulnerable. Banks that fail can be forced to cut bonuses and dividends while they build up capital cushions that will absorb more losses.
This year, the central bank tested banks on whether they could withstand Chinese economic growth falling to 1.7% from 7%, a collapse in Euro area growth to -2.6% and a massive deflationary spiral that sees prices fall the most in the UK in 80 years.
While all banks came out of the hypothetical collapse with their capital buffers above 4.5% of their assets – which was the minimum pass level – RBS and Standard Chartered had the weakest results with 6.1% and 5.4% respectively.

 

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Standard Chartered Plc, which generates most of its income from emerging markets, appointed Topsy Mathew as corporate finance head for South Asia and the Association of Southeast Asian Nations.

Standard Chartered raised about US$5.1 billion (S$7.2 billion) after 96.8 per cent of the bank's shareholders exercised their rights in a share sale yesterday, signalling confidence in chief executive officer (CEO) Bill Winters' strategy to turn around the Asia-focused lender.
The shares will be listed in Hong Kong and the first trading day is expected to be next Wednesday, the London-based bank said in a statement yesterday.

 

[Leckmichamarsch]

looks like SCB is turning corners for the better
make sure those they retrenched are not replaced with f trash ah nehs n pundeks.......... they do fuckall n make the company sick in no time

 

[Ambulance]

looks like SCB is turning corners for the better
make sure those they retrenched are not replaced with f trash ah nehs n pundeks.......... they do fuckall n make the company sick in no time

halo topsy gain ah si topsy loss chway boh sherwin mathews si boh

 

[Asterix]

Bwahahaha, hk:2888 (Stanchart's stock code on HKEx) is now at 59.60 - below bottom of 2009! How much is TemaSICK losing? Sinkies like to be screwed right? Bwahahaha!

http://bigcharts.marketwatch.com/qu...p?symb=hk:2888&insttype=&freq=2&show=&time=13

 

[mojito]

Bwahahaha, hk:2888 (Stanchart's stock code on HKEx) is now at 59.60 - below bottom of 2009! How much is TemaSICK losing? Sinkies like to be screwed right? Bwahahaha!

http://bigcharts.marketwatch.com/qu...p?symb=hk:2888&insttype=&freq=2&show=&time=13

Lower you say? Now is the time to buy more scb shares! And selling an ailing national liner, isn't that simply hitting 2 birds with 1 stone?

 

[Ambulance]

Lower you say? Now is the time to buy more scb shares! And selling an ailing national liner, isn't that simply hitting 2 birds with 1 stone?

halo bye bye bye lee cheong seng eh sai boh

 

[mojito]

halo bye bye bye lee cheong seng eh sai boh

Eh sai buay sai also not your money lah. Hehe.

 

[Asterix]

Ang Moh says no worries, there will always be a greater fool to buy those worthless shares. Why not try knocking on the door of Auntie Ho Jinx, she can't resist the opportunity to buy high sell low with other people's money. Bwahahahaha, song boh, Ang Moh knows that 70% Sinkies are daft! How much is TemaSICK's loss in Stanchart shares as at today? No need accountability arh!

StanChart may see white knight takeover on painful recovery - CLSA

UK bank Standard Chartered (StanChart) (STAN.L) could be acquired by a white knight as its recovery could prove to be "challenging", according to broker CLSA, which upgraded shares of the Asia-focused lender on that possibility.

Singapore's biggest lender DBS Group (DBSM.SI) would be the most likely buyer, added CLSA in a note to clients dated Dec. 17. StanChart has seen its shares fall below a forward price-to-book value of 0.5 times this week, making it an appealing target.

The lender, which is in the middle of a restructuring under new CEO Bill Winters, has announced a series of moves to restore its profitability, including axing 15,000 jobs and streamlining the bank's management structure.

"The bank's road to recovery will likely be a challenging multi-year journey. But the worse the situation gets for StanChart, we believe the more likely it is that a white knight will eventually emerge," CLSA analysts Asheefa Sarangi and Lester Lim wrote in the note.

StanChart declined to comment, while DBS said in a statement there was "no basis to the report, and it is not on our agenda". Singapore state investor Temasek Holdings [TEM.UL], the biggest shareholder for both StanChart and DBS, also declined to comment.

CLSA revised its forecasts for StanChart's earnings in 2015, projecting a loss of $142 million for the year, a first for the bank in at least 13 years.

The bank's shares dipped 0.5 percent in early London trading on Friday after soaring 7.3 percent on Thursday, their biggest-one day gain since March. StanChart's stock in Hong Kong (2888.HK) closed 3.1 percent higher, compared with a 0.5 percent decline in the benchmark Hang Seng index .HSI. DBS lost 1.6 percent in Singapore.

The slump in StanChart's shares this year has pushed its market capitalisation to $27 billion (£18.12 billion), an affordable level for several banks with regional ambitions, the CLSA report added.

http://uk.reuters.com/article/uk-stanchart-clsa-upgrade-idUKKBN0U109Q20151218

 

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[h=1]Peace,John Sells 3,927 Shares of Standard Chartered PLC (STAN) Stock [/h][h=1]Standard Chartered PLC Standard Chartered Board Changes[/h]
In February 2015 we announced that Ms Ruth Markland and Mr Paul Skinner, CBE, two of our most long-standing independent non-executive directors would step down from the Board. Today we confirm that they will step down with effect from 31 December 2015. Ms Jasmine Whitbread, who joined the Board in April 2015, will succeed Paul as Chair of the Brand, Values and Conduct Committee from 1 January 2016.
In addition Dr Lars Thunell, an independent non-executive director and Chair of the Board Risk Committee has decided to step down from the Board. Lars has a number of other commitments and in light of the UN Secretary-General's recently announced Climate Resilience Initiative, will be focusing a greater amount of his time on his role as Chairman of African Risk Capacity Ltd. Lars will ensure a smooth handover of his role as Chair of the Board Risk Committee to his successor before stepping down from the Board on 31 January 2016.
Mr David Philbrick Conner (aged 67) will join the Board as an independent non-executive director on 1 January 2016 and will also join the Board Risk Committee, Audit Committee and the Board Financial Crime Risk Committee at that time. He will succeed Lars as Chair of the Board Risk Committee from 1 February 2016. David has significant global banking experience, strong risk management credentials and an in-depth knowledge of Asian markets, having lived and worked across Asia for 37 years. David was CEO and director of OCBC Bank from 2002 until 2012 and remained as a non-executive director of OCBC Bank until 2014. Prior to that, he spent 26 years at Citibank in a number of senior Asian-based roles. He is currently a non-executive director of GasLog Partners LP.
Ms Elizabeth (Liz) Lloyd, CBE is to be appointed as Group Company Secretary on 1 January 2016 to succeed Miss Annemarie Durbin who will step down as Group Company Secretary with effect from 31 December 2015.
Sir John Peace, Chairman said "On behalf of the Board I would like to thank Ruth, Paul, Lars and Annemarie for their significant contributions to the Group. We wish them all well for the future.
"David Conner brings significant banking and risk management experience and a deep understanding of Asian markets. I am delighted to welcome him to Standard Chartered."
REMUNERATION STATEMENT IN RELATION TO BOARD APPOINTMENT
Remuneration statement in relation to Mr David Philbrick Conner
The independent non-executive directors do not participate in any of the Group's incentive arrangements. Mr Conner will receive a fee of GBP100,000 per annum for his services as a non-executive director, with additional fees payable for appointment to Board Committees. This is disclosed in accordance with the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Hong Kong Listing Rules").
Additional information
There are no matters relating to the resignations of Ms Markland, Mr Skinner and Dr Thunell that need to be brought to the attention of the shareholders of the Company.
Mr Conner has no relationship with any other Director, member of senior management or substantial or controlling shareholder of Standard Chartered PLC.
Mr Conner does not have any interests in shares of the Company.
Save as disclosed above there is no other information to be disclosed under the requirements of UK Listing Rule 9.6.13 (1-6) and Rule 13.51(2) of the Hong Kong Listing Rules in relation to Mr Conner's appointment which has received the necessary regulatory approval.

 

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A Simple Plan

Europe’s new crop of bank bosses have one thing in common going into the 2015 results season — low expectations. Barclays, Deutsche Bank and Standard Chartered have all underperformed their European benchmark since appointing their new chief executives.

Standard Chartered’s Bill Winters, whose bank has suffered the biggest share price falls this year, is next up on February 23, when analysts expect him to report an 85 per cent fall in earnings per share.

Standard Chartered is heavily exposed to emerging markets, where loan defaults are rising and currencies are weakening.

Rob James, UK banks analyst at investment management group Old Mutual, says StanChart’s case wasn’t helped by information that emerged when the bank presented its strategic plan on November 3. “It showed Standard Chartered is made up of a collection of businesses, none of which covers their cost of equity,” Mr James recalls. “That was an astonishing revelation . . . it is hard to recover from that.”

 

[da dick]

nice. i hope our newest temasucks holdings CEO can man up and commit sudoku like a proud samurai too.

 

[Asterix]

Huat arh! TemaSICK loses more of dumbfuck 70%'s CPF monies!

Standard Chartered Plunges on Surprise Annual Loss, Revenue Miss

Standard Chartered Plc dropped the most in more than three years after reporting a surprise full-year loss, as revenue missed estimates and loan impairments almost doubled to the highest in the bank’s history.

The stock dropped as much as 12 percent as the London-based bank said its pretax loss was $1.5 billion in 2015, down from profit of $4.2 billion a year earlier. Excluding some one-time items, pretax profit was $834 million. That fell short of the average estimate for a profit $1.37 billion from 20 analysts surveyed by Bloomberg.

Chief Executive Officer Bill Winters, 54, is attempting to unwind the damage caused by predecessor Peter Sands’ revenue-led expansion across emerging markets, which left the bank riddled with bad loans when the commodity market crashed and growth stalled from China to India. Since June, Winters has raised $5.1 billion from investors, scrapped the dividend and announced plans to cut 15,000 jobs to help save $2.9 billion by 2018, while seeking to restructure or exit $100 billion of risky assets.

...........................

http://www.bloomberg.com/news/artic...d-posts-loss-as-loan-impairments-hit-new-high

 

[Asterix]

An index futures day trader bumps into a former cho bo lan Monetary Authority chief at a traffic light - with a head full of white hair and hairstyle like a floor mop, damn free hiking around Repulsive Bay so damn early in the morning.

Day trader remembers that every time he accidentally bumps into this Yam cake, the stock market will crash on that day.

https://en.wikipedia.org/wiki/Joseph_Yam

So, the day trader rushes to his "office" and examines the charts and there is basis for a crash - the rule of three in operation - SH Composite fails to break on upside three times and likely to break down when it tests the low of the range ahem for the third time, usually but not always, this time may have help from the omen of white hair floor mop ........

http://bigcharts.marketwatch.com/qu...=CN:SHCOMP&insttype=Index&freq=7&show=&time=3

Huat arh - the omen came true. Not going to tell you what is my position size

 

[Asterix]

Moral of the story?

When the Yam cake with the hairstyle like a floor mop cross Asterix's path, go short like there is no tomorrow! Provided of course all the technical factors are also pointing down ............ Huat arh!

Do you notice the symmetry in the market?

http://bigcharts.marketwatch.com/qu...p?symb=hk:hscei&insttype=&freq=7&show=&time=3

China's Equities Plunge Most in a Month as Volatility Reignites

China’s stocks tumbled the most in a month as surging money-market rates signaled tighter liquidity and the offshore yuan declined for a fifth day.

The Shanghai Composite Index sank 6.4 percent at the close, with about 70 stocks falling for each that rose. Industrial and technology companies led losses. The overnight money rate, a gauge of liquidity in the financial system, climbed the most since Feb 6.

The plunge in equities underscores the challenge for China’s policy makers as they seek to project an image of stability in the nation’s financial markets as the economy slows. Finance chiefs and central bankers from the Group of 20 will meet in Shanghai on Friday, while the annual meeting of the legislature begins in Beijing next week. The return of volatility is also a test for China’s new top securities regulator, who took over on the weekend after his predecessor was removed amid criticism of mismanagement.

“The market is in a quite fragile state when everyone scrambles for an exit," said Central China Securities Shanghai based strategist Zhang Gang.“None of the news in the market is sufficient enough to trigger such a slump."

Today’s declines almost erased a 10 percent rebound in the benchmark equity index from a January low. The Shanghai Composite has fallen 23 percent this year, the world’s worst performer after Greece. Volumes on the gauge were 43 percent above the 30-day average.

Money Markets

The Hang Seng Index lost 1.5 percent at 3:39 p.m. in Hong Kong, while the Hang Seng China Enterprises Index retreated 2.4 percent. The CSI 300 Index declined 6.1 percent, with gauges of technology and industrial companies plunging more than 7 percent.

.................

http://www.bloomberg.com/news/artic...ll-as-technology-industrial-companies-retreat

 

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Standard Chartered wins 4 awards from Wealth Magazine



Indonesia court stymies StanChart effort to claw back coal loan

Standard Chartered PLC looking to clean up account books

Standard Chartered seeks to sell $1.4 billion stressed Indian loans

StanChart 'to sell $5.9b of assets in Asia'

Standard Chartered seeks to sell $1.4 billion stressed Indian loans

 

[Asterix]

All that matters as far as I'm concerned is that Stanchart's share price is still below the low of the 08/09 financial crisis ....... and TemaSICK still holds plenty of Stanchart shares bought at much higher prices ........ makes me glad to have stayed away from Sinkies and their beloved famiLEEs ......

http://bigcharts.marketwatch.com/qu...p?symb=hk:2888&insttype=&freq=2&show=&time=13

Heng arh, never short index futures on Monday, not all white haired cbl filthy rich Ah Pek give the same omen - the one encountered last Friday hairstyle not like floor mop and is a Sinkie who lost heavily by being long on index futures during 1987 crash - in any case opening on Monday was strong and as they say tops take longer to form than bottoms already know that with hard earned experience from the shorter time frames (good for gaining experience quickly with small bets) ............

http://www.aastocks.com/en/stock/detailchart.aspx?symbol=110010&hb=0#GTop