StanChart Profits Plunge and Miss Estimates

Profits at Standard Chartered more than halved in 2020 and miss analyst estimates, according to its latest annual results.

Standard Chartered posted $1.61 billion in pre-tax profits for 2020, a 57 percent plunge compared to 2019’s $3.71 billion.

It also missed the average forecast of $1.85 billion, according to analyst estimates compiled by the bank.

Credit impairments increased from $1.4 billion to $2.3 billion.

According to the bank, the impact of global interest rates will cause income levels in 2021 to be similar to 2020, though credit impairments are expected to decrease.

The bank also forecasts annual income growth of 5-7 percent to return in 2022.

Returns in 2020 were clearly impacted by higher provisions, reduced economic activity and low-interest rates, in each case the result of COVID-19,» said Bill Winters, Standard Chartered group chief executive.