Standard Chartered Plc reports 184% Net Income decline and 15.4% Revenue decline
23/02/2016 • About Standard Chartered Plc (
$2888) • 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 3.3x 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 ($2888) 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
Standard Chartered Plc'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. Standard Chartered Plc's CAPEX/Revenue showed almost no change from 2012 to 2015. 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 is William T Winters "Bill". William T Winters "Bill" has 3 years tenure at the company. Standard Chartered Plc'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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chong Hing Bank Ltd ($1111) | 14.2% | 10.0% | -1.2% | 121.1% | |
| China Merchants Bank Co Ltd ($3968) | 42.3% | 24.0% | 18.6% | 33.9% | |
| Harbin Bank Co Ltd ($6138) | 104.6% | 58.3% | 12.1% | 29.2% | |
| Dah Sing Financial Holdings Ltd ($440) | 15.3% | 9.9% | -0.1% | 29.0% | |
| China CITIC Bank Corp Ltd ($998) | 46.7% | 30.5% | 19.5% | 29.0% | |
| |
|---|
| Median (20 companies) | 33.5% | 21.6% | 10.4% | 14.8% | -4.1% |
|---|
| Standard Chartered Plc ($2888) | | 7.5% | -2.4% | -3.5% | -15.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Minsheng Banking Corp Ltd ($1988) | 5.0% | 5.2% | 6.8% | 7.6% | |
| Harbin Bank Co Ltd ($6138) | 20.0% | 19.8% | 9.9% | 6.5% | |
| Industrial & Commercial Bank of China Ltd ($1398) | 3.2% | 3.8% | 4.9% | 5.4% | |
| Bank of Communications Co Ltd ($3328) | 3.1% | 3.6% | 5.1% | 5.3% | |
| China CITIC Bank Corp Ltd ($998) | 1.7% | 2.3% | 2.9% | 4.8% | |
| |
|---|
| Median (20 companies) | 3.6% | 3.6% | 4.1% | 3.1% | 1.7% |
|---|
| Standard Chartered Plc ($2888) | 1.2% | 0.6% | 0.8% | 0.8% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chong Hing Bank Ltd ($1111) | 6.3% | 5.5% | 5.2% | 16.4% | |
| China Construction Bank Corp ($939) | 11.6% | 11.1% | 11.7% | 10.8% | |
| Industrial & Commercial Bank of China Ltd ($1398) | 10.6% | 9.9% | 10.2% | 9.9% | |
| Agricultural Bank of China Ltd ($1288) | 10.3% | 9.9% | 10.0% | 9.3% | |
| Hang Seng Bank Ltd ($11) | 9.0% | 8.6% | 9.5% | 9.0% | 8.3% |
| |
|---|
| Median (20 companies) | 6.4% | 6.1% | 6.3% | 5.5% | 3.7% |
|---|
| Standard Chartered Plc ($2888) | 5.3% | 4.5% | 4.1% | 2.7% | -0.5% |
