StanChart
CEO talks up
revenue growth
STANDARD CHARTERED chief executive Bill
Winters said last week the bank was now
growing across all divisions and regions as
HEûSOUGHTûTOûPUTûBEHINDûHIMûTHEûDIFlCULTIESû
of the last several years, particularly for the
investment bank.
“What we indicated when we announced
our full-year earnings was that 2018 had
started very well for us,” Winters told
REPORTERSûDURINGûAûMEDIAûBRIElNGûATûTHEû
Credit Suisse Asian Investment Conference
in Hong Kong.
“We had growth that was in double digits
and it was across all our regions and all our
business lines.”
“It is very encouraging to be able to
capitalise on a good external environment,
BUTû)ûTHINKûITûALSOûREmECTSûTHEûINVESTMENTSûthat we’ve been making as a bank.”
7INTERS ûWHOûSPENTûHISûlRSTûTWOûYEARSû
since joining in 2015 grappling with bad
debts, job cuts and overhauling lending
standards, has struck a more upbeat tone
since mid-last year, seeking to assure
investors that growth would return to the
emerging markets-focused lender.
Last month, StanChart reported
THATûITSûPRE
TAXûPROlTûFORûTHEûFULL
YEARû
almost trebled, rising to US$3.01bn from
US$1.09bn in 2016.
Operating income was far more subdued,
however. The bank only managed to eke
out a 3% rise to US$14.29bn for the full
year.
Its corporate and institutional banking
division, effectively its investment bank,
has been particularly problematic after
building up massive loans to its biggest
clients during the commodities boom,
many of which subsequently turned sour.
/VERALL û#)"ûINCOMEûFORûûWASûmATûATû
US$6.49bn versus US$6.47bn a year earlier.
Excluding losses incurred in its principallNANCEûBUSINESSûINû ûREVENUEûSLIPPEDû
3%.
StanChart’s performance was also
hampered last year due to the downturn
INûTRADINGûVOLUMESûTHATûAFmICTEDûALLûGLOBALû
BANKSû&ORûTHEûYEAR ûREVENUEûFROMûlNANCIALû
markets fell 16% to US$2.54bn.
Winters has previously said he is
targeting 5%-7% annual growth in its CIB
division and has set a medium-term goal
of an 8% return on equity. Its ROE was 3.5%
last year.
StanChart, which makes around 85%
of its revenue out of Asia, Africa and the
-IDDLEû%AST ûHAS ûHOWEVER ûDRAWNûSOMEûmAKû
for the fact that its underlying income has
not kept pace so far with GDP growth in
the markets where it operates.
Winters called for patience.
“We elected to pursue a programme
at Standard Chartered where we’re a
little bit more deliberate, a little bit
more thoughtful ... which means that
something like a third of our income is
going to be suppressed for a period, whilePeople
&Markets
HKEx details "flexible" biotech IPO rules
Bourse chief hints at exceptions for certain listing candidates
Less than a month after issuing proposals
to attract biotech listings to Hong Kong, the
stock exchange last week made a plea to
POTENTIALûCANDIDATESûNOTûTOûGETûlXATEDûONû
the small print.
“A lot of you are already raising questions
about certain elements and certain aspects
of our regime,” said HONG KONG EXCHANGES AND
CLEARING chief executive Charles Li at the
bourse’s inaugural biotech summit.
“Don’t worry about it. I think the regime
ISûNOWûBUILTûmEXIBLEûENOUGHûTOûALLOWûUSû
to take it on a case-by-case basis, even if
the rules themselves do not cover you
SPECIlCALLYv
Li’s comments came on the penultimate
day of the consultation period on draft rule
changes, which include plans to introduce a
new chapter on the main board for biotech
companies that to do not meet the standard
lNANCIALûELIGIBILITYûTESTS
The consultation document, published
on February 24, proposes to allow biotech
companies to list before they at the pre-
REVENUEûANDûPRE
PROlTûSTAGES ûSUBJECTûTOû
certain criteria.
These include that a company has an
expected minimum market capitalisationof HK$1.5bn (US$191m), that it has
developed at least one core product beyond
the concept stage, and that it be primarily
engaged in R&D for the purpose of
developing its product.
The proposals also outline enhanced
disclosure requirements. These include
publishing all material communications
with relevant authorities in relation to
the companies’ core product, disclosing
information on their operating costs,
capital expenditure and working capital,
and detailing any patents granted relating
to their core products.
HKEx has said it will recognise the
US Food and Drug Administration, the
China Food and Drug Administration
and the European Medicines Authority as
competent authorities, while reserving
the right to recognise other entities at its
discretion.
,IûCLARIlEDûHISûREMARKSûONûTHEûCASE
BY
case approach during a press conference
with reporters.
“What I meant was that there are
circumstances that we might not have
anticipated. For example, you have to be
compliant with CFDA, FDA, EMA. Theremight be another jurisdiction that is equally
competent and equally strong,” he said.
“Today, we do it on a case-by-case basis,
but, tomorrow, we may amend the rules at
some future date.”CHERRY-PICKING
Li’s comments come as several mainland
biotech companies are mulling Hong Kong
IPOs, following the announcement of the
proposed rule changes.
Shanghai-listed TASLY PHARMACEUTICAL GROUP
plans to list its biopharma unit in Hong
Kong to raise about US$1bn in what is
LIKELYûTOûBEûTHEûLARGESTûBIOTECHûmOATûINûTHEû
city this year, according to people close to
the deal.
Among other hopefuls are China’s
ASCLETISûFORûAû53MûmOAT û3HANGHAIû
Fosun Pharmaceutical subsidiary SHANGHAI
HENLIUS BIOTECH (for US$500m), US-based
cancer-detection start-up GRAIL (for up to
US$500m) and China’s HUA MEDICINE (for at
least US$400m).
The reforms, which also include plans
to allow “innovative” companies to issue
shares with weighted voting rights, have
DRAWNûmAKûFROMûSOMEûINVESTORS ûWHOûHAVEûTOP STORY EQUITIES