Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Standard Chartered PLC    STAN   GB0004082847

STANDARD CHARTERED PLC

(STAN)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Factbox - Capital shortfalls for five UK banks, mutuals

share with twitter share with LinkedIn share with facebook
06/20/2013 | 05:19am EDT

LONDON (Reuters) - Five of Britain's top lenders need to plug a combined 27 billion pound ($42.3 billion) capital hole as part of an assessment by the country's new financial watchdog, which is trying to restore confidence in the sector.

About half of the shortfall will be filled by plans already underway, and none of the banks plans to issue new equity.

The following are details from the Prudential Regulation Authority's (PRA) capital assessment, which requires banks to have a 7 percent common equity Tier 1 ratio under full Basel III rules. The assessment is based on end-2012 data and includes further adjustments to capital and risk-weighted assets (RWAs).

(sources: PRA, companies):

PRA ASSESSMENT

Further losses and mis-selling cost 38.1 billion pounds

Increase in RWAs in prudent assessment 169.4 billion pounds

Total capital shortfall 27.1 billion pounds

Capital actions already in plans 13.7 billion pounds

Additional capital needed 13.4 billion pounds

SHORTFALLS

RBS 13.6 billion pounds

Lloyds 8.6 billion pounds

Barclays 3.0 billion pounds

Co-op 1.5 billion pounds

Nationwide 0.4 billion pounds

HSBC, Standard Chartered, Santander UK had no capital shortfall

RBS

The majority state-owned lender said it needs another 18 months to strengthen its capital position enough to satisfy regulators. It has said it would not need to issue new shares or capital.

Plans already underway will fill 10.4 billion pounds of its shortfall, leaving a 3.2 billion hole. The bank said further actions will reduce that to 400 million pounds by the end of this year.

The bank is shrinking its investment bank and selling or winding down its non-core loans. It has agreed to sell a stake of its U.S. business, but that is not included in the PRA assessment as it may not occur until 2015.

LLOYDS

The part-state owned bank said it is confident it can meet its shortfall without having to issue new shares or debt.

It has already put in place plans to raise 5.8 billion pounds, including through the sales of government securities, a portfolio of U.S. mortgage backed securities and shares in wealth management business St James's Place.

It expects to raise the remaining 2.8 billion through capital generation from its core business.

The PRA estimated Lloyds faces another 12.1 billion pounds for future losses and compensating customers for mis-selling or other conduct issues, far more than other banks.

BARCLAYS

Barclays said it can fill its shortfall by the end of 2013 through its capital generative businesses and more disposals of legacy assets, which it said had accelerated this year.

It said the PRA had agreed it does not need to issue equity capital.

Barclays expects its fully loaded Basel 3 CET1 ratio to rise to 10.5 percent by the end of 2015.

It also plans to issue more loss-absorbing capital in the form of a 2 percent layer of contingent capital. That could see it issue $10 billion more contingent capital, to add to the $4 billion issued in the last year.

The PRA also set a new 3 percent leverage ratio requirement, and said Barclays' ratio fell short at 2.9 percent, and would be only 2.5 percent after adjustments. Barclays said its restructuring plans include organic reduction in leverage "over time" and said it will keep the market updated as required.

NATIONWIDE

The mutual did not return calls for comment.

Its leverage ratio was only 2.1 percent under the PRA assessment.

CO-OP BANK

The mutual said last week it will force bondholders to help plug its capital hole. Using a "bail-in" rescue model, bondholders will have to swap their debt for new bonds and equity in the bank, which will be listed on the London Stock Exchange. The parent Co-op Group will also provide financial support for its bank arm.

(Compiled by Steve Slater and Matt Scuffham; Editing by Mark Potter)

Stocks mentioned in the article
ChangeLast1st jan.
BANCO SANTANDER, S.A. -1.62% 1.8348 End-of-day quote.-50.81%
BARCLAYS PLC -1.17% 104.6 Delayed Quote.-41.77%
HSBC HOLDINGS PLC 0.18% 325.55 Delayed Quote.-45.00%
LLOYDS BANKING GROUP PLC -1.33% 27.785 Delayed Quote.-55.54%
NATWEST GROUP PLC -1.16% 110.6 Delayed Quote.-53.97%
STANDARD CHARTERED PLC 1.29% 400.9 Delayed Quote.-43.73%
share with twitter share with LinkedIn share with facebook
Latest news on STANDARD CHARTERED PLC
08/07COVID bank loan demand should ease in coming months, says Bank of England
RE
08/07STANDARD CHARTERED : Terms of Reference of Remuneration Committee
PU
08/07STANDARD CHARTERED : Terms of Reference of Audit Committee
PU
08/07STANDARD CHARTERED : Terms of Reference of Governance and Nomination Committee
PU
08/06STANDARD CHARTERED : Publication of Supplementary Prospectus
PU
08/06STANDARD CHARTERED : HY 2020 Pillar 3 Disclosures
PU
08/06Thai king approves banking exec Predee Daochai as finance minister
RE
08/06STANDARD CHARTERED : Monthly Return of Equity Issuer on Movements in Securities ..
PU
08/05Britain's banks brace for $22 billion loan losses as outlook darkens
RE
08/04Gold vaults above record $2,000/oz mark on U.S. stimulus bets
RE
More news
Financials (USD)
Sales 2020 15 169 M - -
Net income 2020 824 M - -
Net Debt 2020 - - -
P/E ratio 2020 22,0x
Yield 2020 1,97%
Capitalization 16 487 M 16 494 M -
Capi. / Sales 2020 1,09x
Capi. / Sales 2021 1,09x
Nbr of Employees 85 389
Free-Float 93,9%
Chart STANDARD CHARTERED PLC
Duration : Period :
Standard Chartered PLC Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends STANDARD CHARTERED PLC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 6,24 $
Last Close Price 5,23 $
Spread / Highest target 68,1%
Spread / Average Target 19,3%
Spread / Lowest Target -42,0%
EPS Revisions
Managers
NameTitle
William Thomas Winters Group Chief Executive Officer & Executive Director
José Viñals Group Chairman
David Whiteing Group Chief Operating Officer
Andrew Nigel Halford Group Chief Financial Officer & Executive Director
Michael Gorriz Group Chief Information Officer
Sector and Competitors