Standard Chartered Plc reports 184% Net Income decline
23 Feb 2016 • About Standard Chartered Plc (
$STAN) • By InTwits
Standard Chartered Plc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Standard Chartered Plc doesn't have a profitable business model yet: 2015 ROIC is -0.5%
- Standard Chartered Plc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is at -0.5%
- It operates with high leverage: Net Debt/EBITDA is 7.5x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Standard Chartered Plc ($STAN) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24,488 | 26,325 | 25,694 | 24,787 | 20,976 | -15.4% |
| Net Income | 4,849 | 4,887 | 4,090 | 2,613 | -2,194 | -184.0% |
Balance Sheet
|
|---|
| Cash | 47,364 | 60,537 | 54,534 | 97,282 | 65,312 | -32.9% |
| Short Term Debt | 35,296 | 36,427 | 43,517 | 54,391 | 37,611 | -30.9% |
| Long Term Debt | 63,857 | 74,567 | 84,986 | 94,898 | 81,732 | -13.9% |
Cash flow
|
|---|
| Capex | 286 | 162 | 205 | 189 | 130 | -31.2% |
Ratios
|
|---|
| Revenue growth | 14.4% | 7.5% | -2.4% | -3.5% | -15.4% | |
| Net Income Margin | 19.8% | 18.6% | 15.9% | 10.5% | -10.5% | -21.0% |
| CAPEX, % of revenue | 1.2% | 0.6% | 0.8% | 0.8% | 0.6% | -0.1% |
| ROIC | 5.3% | 4.5% | 4.1% | 2.7% | -0.5% | -3.2% |
| ROE | 12.0% | 11.1% | 8.7% | 5.4% | -5.0% | -10.4% |
Revenue and profitability
The company's Revenue dropped on 15.4% in 2015.
Net Income marign dropped on 21.0 pp from 10.5% to -10.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Standard Chartered Plc's CAPEX/Revenue was 0.62% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.73%.
Return on investment
The company operates at negative ROIC (-0.46%) and ROE (-4.99%). ROIC decreased on 3.2 pp from 2.7% to -0.46% in 2015. ROE dropped on 10.4 pp from 5.4% to -5.0% in 2015.
Leverage (Debt)
Debt dropped on 20.1% in 2015 while cash dropped on 32.9% in 2015.
Management team
Standard Chartered Plc's CEO William T Winters "Bill" is a founder and has spent 3 years at the company. Standard Chartered Plc's CFO is Andrew Nigel Halford "Andy". Andrew Nigel Halford "Andy" has 4 years tenure at the company.
Appendix 1: Peers in Banks
Below you can find Standard Chartered Plc benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| Tsb Banking Grp ($TSB) | | -3.2% | -33.8% | 39.2% | -1.4% |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | | 9.1% | 11.7% | 23.9% | 7.1% |
| |
|---|
| Median (43 companies) | 8.1% | 10.2% | 4.8% | 12.1% | 3.7% |
|---|
| Standard Chartered Plc ($STAN) | | 7.5% | -2.4% | -3.5% | -15.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | 2.7% |
| Tsb Banking Grp ($TSB) | 1.3% | 1.8% | 4.4% | 7.2% | 3.4% |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| |
|---|
| Median (40 companies) | 2.4% | 2.4% | 2.8% | 2.2% | 2.5% |
|---|
| Standard Chartered Plc ($STAN) | 1.2% | 0.6% | 0.8% | 0.8% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | 30.3% |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | 14.9% |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | 12.6% |
| |
|---|
| Median (43 companies) | 7.1% | 6.4% | 5.7% | 4.5% | 3.3% |
|---|
| Standard Chartered Plc ($STAN) | 5.3% | 4.5% | 4.1% | 2.7% | -0.5% |
