Reports of cash-call at StanChart are completely inaccurate -UPDATE

9th Dec 2013 10:37

Top management at Asia, Africa and Middle East-focused lender Standard Chartered are divided on at least two key issues, according to a report over the weekend from The Independent. Thus, the need for a cash-call has been discussed privately between directors, the newspaper wrote. Sir John Peace, the Chairman, was said to be in favour of that course of action. Peter Sands, the Chief Executive, on the other hand, was said to be against the idea.There was also disagreement as regards succession plans. Sands was reportedly eyeing stepping up to the Chairmanship when Peace leaves. However, sources close to Standard Chartered told Sharecast both those suggestions - regarding internal differences over the bank´s best course of action on capital and succesions plans - are "completely inaccurate."Furthermore, the lender stressed to Sharecast that its capital position is demonstrably strong, pointing out that it sailed through recent PRA stress tests with flying-colours and that it remains well placed [on capital], managing the balance sheet conservatively. Acting as a backdrop, perhaps, in a research note issued on Monday analysts at Credit Suisse explained to clients that: "We see risks to the guidance given at the recent investor day and our key concern is the limited organic capital generation of the group, which could see a Basel 3 fully loaded ratio go below 10% in the first half of 2014 against a tougher regulatory backdrop." As of 10:31 shares of StanChart were just a smidgen lower, slipping by 0.19% to 1,328.5p. AB