Standard Chartered the Bank to Buy

Looking for a financial stock for your portfolio? Analysts say Standard Chartered looks compelling thanks to a dip in emerging markets which has caused the share price to fall

Erin Davis 26 February, 2014 | 11:17AM
Facebook Twitter LinkedIn

Standard Chartered, a darling of the markets during the financial crisis, has recently fallen out of favour as investors worry about emerging-market growth. Analysing the bank can be a daunting task—it holds more than $600 billion in total assets and operates in 68 countries—and may cause some investors to shy away at any hint of risk. We suggest investors focus on four key issues: emerging-market exposure, capital, credit quality, and the long-term value of the business.

Can Standard Chartered Withstand a Slowdown in Emerging Markets?

We argue that there are several important issues at work here. First, while Standard Chartered is an Asia-focused bank, its footprint is broadly diversified across the region's countries and their unique economic issues. No one country makes up more than 25% of Standard Chartered's risk-weighted assets, and the bank's largest market is Hong Kong, whose economic growth is projected to be 4% in 2014.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Erin Davis  is a senior banking analyst for Morningstar.