Standard Chartered Plc revenue decreased on 6.0% in 2016
24 Feb 2017 • About Standard Chartered Plc (
$STAN) • By InTwits
Standard Chartered Plc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Standard Chartered Plc is a company in decline: 2016 revenue growth was -6.0%, 5 years revenue CAGR was -4.2%
- Standard Chartered Plc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has potentially unprofitable business model: ROIC is at 0.6%
- It operates with high leverage: Net Debt/EBITDA is 6.1x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Standard Chartered Plc ($STAN) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 26,325 | 25,694 | 24,787 | 20,976 | 19,716 | -6.0% |
| Net Income | 4,887 | 4,090 | 2,613 | -2,194 | -247 | -88.7% |
Balance Sheet
|
|---|
| Cash | 60,537 | 54,534 | 97,282 | 65,312 | 70,706 | 8.3% |
| Short Term Debt | 36,427 | 43,517 | 54,391 | 37,611 | 36,894 | -1.9% |
| Long Term Debt | 74,567 | 84,986 | 94,898 | 81,732 | 66,223 | -19.0% |
Cash flow
|
|---|
| Capex | 162 | 205 | 189 | 130 | 195 | 50.0% |
Ratios
|
|---|
| Revenue growth | 7.5% | -2.4% | -3.5% | -15.4% | -6.0% | |
| Net Income Margin | 18.6% | 15.9% | 10.5% | -10.5% | -1.3% | 9.2% |
| CAPEX, % of revenue | 0.6% | 0.8% | 0.8% | 0.6% | 1.0% | 0.4% |
| ROIC | 4.5% | 4.1% | 2.7% | -0.5% | 0.6% | 1.1% |
| ROE | 11.1% | 8.7% | 5.4% | -5.0% | -1.0% | 4.0% |
Revenue and profitability
The company's Revenue decreased on 6.0% in 2016.
Net Income marign increased on 9.2 pp from -10.5% to -1.3% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Standard Chartered Plc had CAPEX/Revenue of 0.99%. Standard Chartered Plc's CAPEX/Revenue showed almost no change from 2013 to 2016. For the last three years the average CAPEX/Revenue was 0.79%.
Return on investment
The company operates at low but positive ROIC (0.64%) and negative ROE (-0.99%). ROIC increased slightly on 1.1 pp from -0.46% to 0.64% in 2016. ROE increased on 4.0 pp from -5.0% to -0.99% in 2016.
Leverage (Debt)
Debt dropped on 13.6% in 2016 while cash increased on 8.3% in 2016.
Management team
The company's CEO is William T Winters "Bill". William T Winters "Bill" is a founder and has 3 years tenure at the company. Andrew Nigel Halford "Andy" is a The company's CFO. Andrew Nigel Halford "Andy" has spent 4 years at the company.
Appendix 1: Peers in Banks
Below we provide Standard Chartered Plc benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 4.8% | 19.7% | 25.3% | 17.8% |
| Mcb Bank Ltd ($MCBS) | | -1.7% | 19.4% | 22.4% | -10.7% |
| |
|---|
| Median (43 companies) | 24.1% | 4.8% | 12.1% | 5.5% | 4.0% |
|---|
| Standard Chartered Plc ($STAN) | | -2.4% | -3.5% | -15.4% | -6.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.4% | 2.8% | 2.2% | 2.5% | 1.9% |
|---|
| Standard Chartered Plc ($STAN) | 0.6% | 0.8% | 0.8% | 0.6% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | 12.5% |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | 10.7% |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| |
|---|
| Median (43 companies) | 6.4% | 5.7% | 4.5% | 3.5% | 4.5% |
|---|
| Standard Chartered Plc ($STAN) | 4.5% | 4.1% | 2.7% | -0.5% | 0.6% |
