US Edition Standard Chartered
£15.45 -9p
Questor says BUY
It emerged unscathed from the financial crisis as it operates in growing areas of the world. The countries in which it works have cultures of saving, rather than debt, meaning it does not have to rely on wholesale markets for capital.
Yesterday the group posted a solid set of interim figures – and predicted a good out-turn for the full year.
"We've got income up, profit up, deposits up, lending up, dividend up," said Peter Sands, chief executive. A "somewhat different story to tell to other banks: we're growing, we're hiring, we're delivering profit growth."
In the six months to the end of June, pre-tax profits rose 17pc to $3.6bn (£2.2bn), as loans and advances to customers increased 22pc to $268bn.
The big issue facing the bank is staff costs, as most banks are now hiring in emerging markets.
India was Standard Chartered's weakest region because of higher interest rates slowing demand.
Questor advised taking up your rights in the bank's equity issue last October. The lender offered one new share at £12.80 for eight existing ones, which brings Questor's theoretical ex-rights price up to £12.26 (from original tip of £12.20).
Based on this calculation, the shares are up 26pc compared with a FTSE 100 up 28pc. However, Questor upgraded the stance on the shares to buy in June at £15.80 and they are still below this level.
Trading on a December 2011 earnings multiple of 12.6 and yielding 2.9pc, the shares remain a buy for double-digit profit growth in 2011 and beyond.