Standard Chartered Plc reports 6.0% revenue decline in 2016
24/02/2017 • About Standard Chartered Plc (
$2888) • 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 0.8x while industry average is -5.7x
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. $ | 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
The company's CAPEX/Revenue was 0.99% in 2016. Standard Chartered Plc's CAPEX/Revenue showed almost no change from 2013 to 2016. Average CAPEX/Revenue for the last three years 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
Standard Chartered Plc's CEO is William T Winters "Bill". William T Winters "Bill" 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 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -20.6% | 43.4% | 6.8% | 116.4% | |
| Huishang Bank Corp Ltd ($3698) | 33.9% | 22.8% | 24.3% | 24.6% | |
| Shengjing Bank Co Ltd ($2066) | 36.5% | 36.3% | 40.1% | 24.3% | |
| Bank of Chongqing Co Ltd ($1963) | 38.4% | 26.6% | 28.4% | 18.5% | |
| BOC Hong Kong Holdings Ltd ($2388) | 15.1% | 11.4% | -3.0% | 11.6% | |
| |
|---|
| Median (22 companies) | 24.0% | 11.7% | 14.8% | 7.2% | -16.0% |
|---|
| Standard Chartered Plc ($2888) | | -2.4% | -3.5% | -15.4% | -6.0% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | 4.1% | 29.9% | 27.0% | 33.5% | |
| |
|---|
| Median (1 company) | 4.1% | 29.9% | 27.0% | 33.5% | |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dah Sing Banking Group Ltd ($2356) | 3.9% | 4.1% | 2.2% | 7.5% | |
| Bank of Communications Co Ltd ($3328) | 3.6% | 5.1% | 5.3% | 7.2% | |
| Dah Sing Financial Holdings Ltd ($440) | 3.0% | 3.4% | 1.7% | 5.9% | |
| Harbin Bank Co Ltd ($6138) | 19.8% | 9.9% | 6.5% | 5.8% | |
| Bank of China Ltd ($3988) | 4.7% | 5.4% | 4.7% | 4.8% | |
| |
|---|
| Median (22 companies) | 3.4% | 3.9% | 3.3% | 2.9% | 1.8% |
|---|
| Standard Chartered Plc ($2888) | 0.6% | 0.8% | 0.8% | 0.6% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Construction Bank Corp ($939) | 11.1% | 11.7% | 10.8% | 8.4% | |
| Hang Seng Bank Ltd ($11) | 8.6% | 9.5% | 9.0% | 8.3% | 8.1% |
| Industrial & Commercial Bank of China Ltd ($1398) | 9.9% | 10.2% | 9.9% | 8.1% | |
| Agricultural Bank of China Ltd ($1288) | 9.9% | 10.0% | 9.3% | 7.4% | |
| BOC Hong Kong Holdings Ltd ($2388) | 5.9% | 6.4% | 5.8% | 6.2% | |
| |
|---|
| Median (22 companies) | 6.0% | 6.4% | 5.5% | 4.7% | 2.1% |
|---|
| Standard Chartered Plc ($2888) | 4.5% | 4.1% | 2.7% | -0.5% | 0.6% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| KVB Kunlun Financial Group Ltd ($8077) | -66.3x | -7.1x | -10.6x | -5.7x | |
| |
|---|
| Median (1 company) | -66.3x | -7.1x | -10.6x | -5.7x | |
|---|
