Standard Chartered unveils $1bn share buy back plan
Shares in Standard Chartered rose this morning after the bank unveiled plans for an up to $1bn (773.2m) share buy back and posted a 10 per cent jump in profits for the first quarter of 2019.
Underlying profit before tax was up 10 per cent to $1.4bn, the bank announced today, as it revealed that it had received regulatory approval to start buying back shares, sending the bank's London shares up more than four per cent.
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The proposal follows chief executive Bill Winters’ plan, which was revealed in February, to double return on tangible equity and dividends in three years by cutting costs by $700m and boosting income.
The bank’s shares in London have dropped by 42 per cent since Winters took over as chief executive.
Winters said: “Our first quarter profit supports our belief that we will generate full-year returns of at least 10 per cent by 2021.
“The resolution of our legacy conduct and control issues means we can now manage our capital position more dynamically.
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“We will maintain our strategic investment programme and start to buy back $1bn of our shares, reflecting our confidence in our ability to execute the strategy and create long-term shareholder value.”
Operating income fell by two per cent to $3.8bn in the first quarter of 2019, however, the bank said it was on track to hit its financial targets this year.