MARKET TALK: MS Tips Record Year For Standard Chartered Profit

2nd Aug 2010 08:38

0738 GMT [Dow Jones] STOCK CALL: Morgan Stanley tips FY10 to be another record year for Standard Chartered (2888.HK). Says consumer business starting to deliver more strongly after many years of most growth coming from wholesale business. Notes 1H10 pre-close statement confirmed record income, profit to end-May. Expects 1H10 income flat vs 1H09 at about $7.9 billion, with own-account income weaker vs 1H09; expects NIM down fractionally vs 2009 with low liability margins persisting. Rates at Equalweight, target at HK$210. Notes stock trading above target price, up strongly since start of July. "At 2.7X P/TNAV 2010E and 13.4X 2011E EPS, we would take some profits at these levels. 1H10 should be relatively uneventful given the pre-close statement to end-May, and June was not strong for most wholesale banks." Adds, looking for guidance on future revenue, cost expectations. Stock +0.9% at HK$228.20. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires August 02, 2010 03:38 ET (07:38 GMT)