Source: Sharecast
Berenberg said the 2023 results last week "provided clear confirmation that recent improvements in the bank’s returns can be sustained".
"Importantly, revenues and net interest income (NII) can grow even as interest rates fall. The bank’s commitment for FY 2026 expenses to be below USD12bn also provides an antidote to investors’ concerns about cost control," it said.
"Our underlying EPS for Standard Chartered increases by 2-3%,” Berenberg said, adding that reductions to its statutory earnings instead reflect planned restructuring costs.
It said that while the shares rose by around 5% following the results, the bank’s 0.5x TBV valuation continues to poorly reflect Berenberg’s FY 2026 estimate for return on tangible equity of 11.3% versus a 12% target.
The new price target values the bank on 0.8x TBV versus 0.5x currently.
At 1310 GMT, the shares were up 2% at 648.0p.