Commerzbank & Standard Chartered shares jump on outlook
Standard Chartered (STAN) and Commerzbank’s (CBKG) results are music to investors’ ears, a day after Barclays hit a flat note. IGTV’s Angeline Ong takes a look at the mood music off the back of these results.
Standard Chartered
Standard Chartered PLC (LSE) and Commerzbank AG are two banks that wowed investors today. Take a look at what their shares have done. Here is a look at Standard Chartered PLC (HK) first. This is its London listed stock, which opened about 2% higher. Standard Chartered's annual profit jumped 28% and this bank also unveiled a $1 billion share buyback. The news sent its Hong Kong shares higher as well. But don't forget, there's been a lot of takeover speculation relating to First Abu Dhabi Bank. Standard Chartered also boosted its performance goals and that has also helped its shares up.
Commerzbank
The German lender, which is undergoing major restructuring, said it sees its 2023 result well above its 2022. Net profit rose a better than expected 12% in Q4. Commerzbank, though, has been slashing jobs and shutting branches as part of its turnaround plan. The numbers from Stanchart and Commerzbank will be music to investors ears, though, after Barclays PLC hit a flat note with its results earlier in the week, which sent its shares lower.
Opportunities & headwinds
Do remember, many of these banks like Commerzbank and Standard Chartered have been benefiting from higher interest rates. There are headwinds coming in the form of potentially lower rates or less aggressive interest rate hikes. Also, rising inflation and a weaker economy remain risk factors. If all this leads to soaring debt and a decrease in loan growth, we could see these banks performing less well.
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