Standard Chartered’s massive upheaval has delivered improved profitability, with the bank now looking to increase returns closer to its cost of capital. The turnaround has been difficult, but CEO Bill Winters' approach appears to be working. He has addressed issues with risk controls, culture, and cost base, and the group has begun to trim markets and products where it lacks the scale to be competitive.
With the bank’s restructuring largely behind it, a focus on growth should lead to an improvement in profitability in the medium term.
An increase in trade tensions between China and the US may affect global trade in such a way that it reduces demand for StanChart's products or makes it more difficult for the group to operate.
|
Metric
|
STAN
|
BCS
|
LYG
|
|---|---|---|---|
Price/Earnings (Normalized) | 5.90 | 5.22 | 6.41 |
Price/Book Value | 0.47 | 0.49 | 0.66 |
Price/Sales | 1.35 | 1.21 | 1.73 |
Price/Cash Flow | 4.60 | 1.46 | 3.00 |
|
Metric
|
STAN
|
BCS
|
LYG
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
STAN
|
BCS
|
LYG
|
|---|---|---|---|
Return on Assets (Normalized) | 0.43% | 0.43% | — |
Return on Equity (Normalized) | 7.40% | 11.80% | — |
Return on Invested Capital (Normalized) | — | — | — |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
JPM
| JPMorgan Chase & Co | Qjqkchlzwp | Vdhr | $551.8 Bil | |
BAC
| Bank of America Corp | Rhdtvcsz | Zfv | $301.5 Bil | |
WFC
| Wells Fargo & Co | Cvcndvchg | Plpmk | $212.2 Bil | |
HSBC
| HSBC Holdings PLC ADR | Qkkdxlss | Dnmy | $155.7 Bil | |
RY
| Royal Bank of Canada | Gfskhtsr | Mbljk | $138.0 Bil | |
MUFG
| Mitsubishi UFJ Financial Group Inc ADR | Qzxldxdpc | Yly | $119.2 Bil | |
C
| Citigroup Inc | Yytdqnbg | Hgbx | $119.2 Bil | |
TD
| The Toronto-Dominion Bank | Llvrxnvxwx | Fkb | $104.0 Bil | |
UBS
| UBS Group AG | Xhhqmqvxp | Xqlvhtf | $90.7 Bil | |
SAN
| Banco Santander SA ADR | Qwz | Kzjrjxg | $80.0 Bil |
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