The adjusted earnings before interest and taxes of the British bank Standard Chartered collapsed by 64% yoy in first quarter of 2016 to 539 million USD. The bank increases again its reserves for bad loans. The Tier 1 ratio of the British lender Standard Chartered, which is one of the key measures of financial strength, rose to 13.1% from 12.6% at the end of last year. The growth of capital is higher than expected and is a key positive for the quarter.
The chairman of the Board of Directors, Bill Winters, has been trying for years to revive the business of active primarily in Asia Bank, after its expansion under the leadership of his predecessor bring significant volume of bad loans, primarily for the mining industry. Winters has gained 5 billion USD through a capital increase, restrict dividend policy and ordered the closure of 15,000 jobs. Moreover, he wanted to part with assets in Asia for at least 4.4 billion USD.
The share price of the big British bank Standard Chartered rose on the London Stock Exchange with 10.5% to 5.752 GBP and topped the FTSE-100 index, although the company reported a decline of 64% in profits for the first quarter. The growth Tuesday puts the share of green area for the first time since 2016 and marked 47% growth from the bottom reached in February.