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STANCHART 1Q16 Pre-tax Operating Profit US$539M, Down 63.9% YoY
STANCHART (02888.HK)  -0.950 (-1.574%)    Short selling $28.19M; Ratio 10.008%   announced that for the quarter ending 31 March 2016, the statutory profit before taxation was US$589 million, down 59.21% yearly. Underlying profit before taxation was US$539 million, down 63.9% yearly. Operating income fell 24.34% yearly to US$3.345 billion. Operating profit before impairment losses and taxation fell 42.89% to US$1.096 billion.

Total operating expenses dived 10.11% to US$2.249 billion, reflecting restructuring actions taken towards the end of 2015 and business disposals. The bank plans to deliver the planned $1 billion in gross cost efficiencies in 2016.

Loan impairment of US$471 million was broadly in line with the first quarter of 2015, but down significantly on the fourth quarter. Other impairment of $123 million related largely to investments in principal finance and was driven by debt and equity market volatility during the first quarter.

Common equity tier 1 ratio (end point) was 13.1%, up 50 bps; total capital ratio (transitional) amounted to 19.6%, up 10 bps; total risk-weighted assets were US$295.31 billion, down 3%.

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