StanChart posts $1.2b loss for FY’15 vs. profit of $4.2b a year ago

Banking giant Standard Chartered posted a pre-tax loss of $1.2b for FY’15 vs. a profit of $4.2b a year ago, affected by $4b worth loan impairments. The loss was its first since 1998.

Revenues for the same period missed analyst’s estimates of $15.9b, coming in at $15.4b, down 15% on a y/y basis.

Pre-tax profit excl. items was $834m, missing estimates of a profit of $1.3b.

Tier-one capital ratio was 12.6%, down from 13.1% during September 2015.

Dividend payment was suspended from 2H’15 but the bank expects to resume payouts in 2016.

The bank wrote down the value of its business in Thailand, placed its Indonesian business under review and also eliminated executive’s bonuses.

CEO Bill Winters forecasted a subdued outlook for 2016 and sought to reduce the bank’s exposure to the commodity markets.

The bank set a target of 20% return on equity for FY’20, from the current levels of -0.4%.

Source: Bloomberg