February 27, 2020 / 4:52 AM / in a month

REFILE-BRIEF-Standard Chartered Says Will Take Longer To Achieve Rote Target Of 10%

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Feb 27 (Reuters) - Standard Chartered:

* FY NET INTEREST MARGIN 1.62% VERSUS 1.69%

* SOFTER HK ECONOMY AND CORONAVIRUS OUTBREAK TO LIKELY RESULT IN INCOME GROWTH IN 2020 BELOW MEDIUM-TERM 5-7% TARGET RANGE

* CORONAVIRUS & HK ECONOMY HEADWINDS EXPECTED TO BE TRANSITORY; NOW BELIEVE IT WILL TAKE LONGER TO ACHIEVE ROTE TARGET OF 10%

* PROPOSED $0.5 BILLION SHARE BUY-BACK WILL REDUCE CET1 RATIO BY ABOUT 20BPS

* AUTHORISED PURCHASE AND CANCELLATION OF UP TO $0.5BN WORTH OF SHARES STARTING SHORTLY

* WILL REVIEW POTENTIAL FOR MAKING A FURTHER CAPITAL RETURN UPON COMPLETION OF PERMATA SALE

* FY UNDERLYING OPERATING INCOME $15,271 MILLION VERSUS $14,968 MILLION

* UNDERLYING RETURN ON ORDINARY SHAREHOLDERS TANGIBLE EQUITY 6.4% AS AT DEC 31

* COMMON EQUITY TIER 1 RATIO 13.8% AS AT DEC 31

* INTEREST RATES CONTINUE TO FALL, PUTTING PRESSURE ON OUR NET INTEREST INCOME DESPITE ONGOING EFFORTS TO IMPROVE COST OF FUNDING

* LIKELY INCOME GROWTH IN 2020 TO BE BELOW MEDIUM-TERM 5-7% TARGET RANGE

* “OUTBREAK OF NOVEL CORONAVIRUS (COVID-19) COMES WITH UNPREDICTABLE HUMAN AND ECONOMIC CONSEQUENCES”

* PREPARED TO TAKE FURTHER ACTION IF DAMPENING EXTERNAL FACTORS TURN OUT TO BE MORE STRUCTURAL OR LONG-LASTING

* TO ONLY SUPPORT CLIENTS WHO TRANSITION THEIR BUSINESS TO GENERATE LESS THAN 10% OF THEIR EARNINGS FROM THERMAL COAL BY 2030

* WILL REVIEW ACTIVITIES WITHIN OTHER INDUSTRIES GENERATING SUBSTANTIAL CO2 EMISSIONS

* FY HONG KONG UNDERLYING PROFIT BEFORE TAX $1,705 MILLION VERSUS $1,642 MILLION

* TARGETING NET ZERO EMISSIONS AND TO USE ONLY RENEWABLE ENERGY SOURCES BY 2030 Source text for Eikon: Further company coverage:

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