[ET Net News Agency, 19 February 2021] Standard Chartered (STAN) (02888) will report 4Q
2020 results on 25 February. Citi Research modeled underlying pre-tax loss of US$44m,
driven largely by softer revenues (-9% QoQ, -11% YoY), a small increase in costs (+4% QoQ
ex-levy, -1% YoY) and normalization of credit costs (CoR 54bps).
The research house said rising US rates are viewed as positive for UK/HK banks. However,
STAN's disclosed sensitivity to US and related rates is less than half that of HSBC
(00005). In the near-term, average HIBOR rates are down marginally in 4Q 2020 (-7bps QoQ).
STAN is expected to restart dividends along with FY2020 earnings and Citi modeled for
DPS of 7.2 cents for the year. Buybacks are likely during 2021 (likely 2H 2021). Citi
maintained its "neutral" call on STAN, with a target price of HK$56. (KL)