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Standard Chartered sinks after earnings, loan impairments double

Published 02/23/2016, 04:23 AM
© Reuters.  Standard Chartered tumbles after missing forecasts
STAN
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Investing.com - Shares in Standard Chartered PLC (L:STAN) tumbled by 12% in early morning London trade on Tuesday after reporting a surprise annual loss with revenues missing estimates and loan impairments practically doubling to the highest level in the bank’s history.

Standard Chartered reported a pretax loss of $1.5 billion in 2015, down from profit of $4.2 billion in the prior year.

Excluding some one-offs, pretax profit tallied in at $834 million, well short of the consensus estimate of $1.37 billion.

Revenue last year dropped 15% to $15.4 billion, coming in short of average forecast of $15.9 billion.

Loan impairments practically doubled to $4 billion, the highest in the financial institution’s history, from the $2.1 billion booked in 2014.

“While our 2015 financial results were poor, they are set against a backdrop of continuing geo-political and economic headwinds and volatility across many of our market,” Chief Executive Officer Bill Winters explained in a statement.

“We expect the financial performance of the group to remain subdued during 2016,” Winters warned.

At 9:19AM GMT or 4:19AM ET, the bank’s shares had recovered some of the lost territory, but were still trading down -3.51% to £421.00.

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