April 29, 2020 / 4:50 AM / a month ago

BRIEF-Standard Chartered Posts Qtrly Underlying Profit Before Tax $1.22 Bln

April 29 (Reuters) - 2888.HK:

* QTRLY NET INTEREST MARGIN DOWN 2BPS FROM 4Q’19 TO 1.52%

* AS AT MARCH-END, COMMON EQUITY TIER 1 RATIO 13.4%

* QTRLY UNDERLYING PROFIT BEFORE TAX OF $1,222 MILLION VERSUS $1,384 MILLION

* Q1 CREDIT IMPAIRMENT UP SIGNIFICANTLY, DRIVEN PRIMARILY BY ECONOMIC IMPACT OF COVID-19

* QTRLY OPERATING INCOME $4,327 MILLION VERSUS $3,813 MILLION

* QTRLY STATUTORY PROFIT BEFORE TAX $886 MILLION VERSUS $1,242 MILLION

* Q1 CREDIT IMPAIRMENT UP BY $878 MILLION TO $956 MILLION

* EXPECT GRADUAL RECOVERY FROM COVID-19 PANDEMIC, WITH MAJOR CONTRACTION IN ECONOMIC GROWTH RATES ACROSS MOST OF THE WORLD IN Q2

* ACTING TO MANAGE COSTS PRUDENTLY WHILE DOING EVERYTHING CAN TO PROTECT JOBS

* QTRLY UNDERLYING RETURN ON TANGIBLE EQUITY 8.6% VERSUS 9.6%

* DECISIONS BY FED TO CUT INTEREST RATE ALONG WITH ACTIONS BY OTHER CENTRAL BANKS ESTIMATED TO HIT FURTHER $600 MILLION FOR 2020 INCOME IN 2020

* SEEING ENCOURAGING EARLY SIGNS OF RECOVERY FROM COVID-19 HAPPENING IN CHINA

* PERMATA SALE IS EXPECTED TO COMPLETE IN 2Q’20 AND TO INCREASE CET1 BY 40BPS

* NOT POSSIBLE TO RELIABLY QUANTIFY IMPACT OF SPREAD OF COVID-19 ON GROUP’S FUTURE FINANCIAL PERFORMANCE

* QTRLY NET INTEREST INCOME $1,842 MILLION VERSUS $1,920 MILLION

* INCOME GROWTH SHOULD EXCEED RWA GROWTH IN THE MEDIUM-TERM DESPITE POTENTIAL SHORT-TERM HEADWINDS DURING THE COVID-19 PANDEMIC

* GROUP IS WELL CAPITALISED WITH LOW LEVERAGE AND HIGH LEVELS OF LOSS-ABSORBING CAPACITY

* “SENTIMENT GLOBALLY IS EXTREMELY DEPRESSED NOW”

* GROUP TARGETING TOTAL COSTS EXCLUDING UK BANK LEVY BELOW $10 BILLION FOR FY 2020

* WELL PREPARED FOR A PROTRACTED PERIOD OF SEVERE DISLOCATION

* RISK-WEIGHTED ASSETS OF $273 BILLION UP $9 BILLION OR 3% IN 1Q MOSTLY DUE TO IMPACT OF COVID-19

* GROUP CONTINUES TO TARGET A CET1 RATIO OF 13-14 PER CENT IN THE MEDIUM-TERM Source text for Eikon: Further company coverage:

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