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Standard Chartered bounding ahead

TIP UPDATE: Standard Chartered's focus on Asian markets has delivered more impressive growth
December 13, 2010

Standard Chartered has issued a typically robust pre-close trading update, which reported continued strong earnings growth and falling bad debts.

IC TIP: Buy at 1816p

The lender, which generates about three quarters of its earnings in fast-growth Asian markets, said that it expects double-digit pre-tax profit growth from both its consumer banking and wholesale banking operations at the full-year stage. Credit quality has continued to improve, too. The wholesale unit is expected to report loan impairments that are "significantly" below 2009's levels, while retail banking's loan impairments should be "slightly" below last year's levels. Although, reflecting the high levels of investment in the business, cost growth is expected to exceed income growth for the full-year.

What we said:

When: 15 January 2010

Price: 1,617p

Tip performance: +12%