The Company operates through a number of subsidiaries including SCB, one of the leading international banking and financial services company. SCB particularly focuses on the markets of Asia, Africa and the Middle East. The Company 100% interest in SCB.
Facts and figures as of 31 December 2009:
• The Group operates in approximately 1,700 branches and outlets, 5679 ATMs in more than 71 countries – a key part of the distribution network for the Consumer Banking Business.
• The Group employed over 75,000 employees worldwide. Nearly half of the employees are women, and almost 70 nationalities are represented among the senior management.
• The Group has significant operations in the Asia region, which accounted for over 75% of its US$5,151 million total profit before taxation.
• The Company had total consolidated assets of US$437 billion, total consolidated customer loans and advances of US$198,292 million, total consolidated customer deposits of US$251,244 million and total parent company shareholders’ equity (excluding minority interests) of US$27,340 million.
• Standard Chartered’s total capital ratio was 16.5% and its Tier 1 capital ratio was 11.5%.
• 2009 is the 7th consecutive year in which the Company has demonstrated a sustained and consistent track record of delivering record operating income and record profits. Over this period, the Company achieved a CAGR of 19% for income and 22% and for profits.
• For Standard Chartered Bank, India accounted for around 21 per cent of the group’s profit of nearly $4.5 billion in 2008. India reported operating profit of $943 million for the year-ended December 2008, 37 per cent higher than the previous year. In 2008, Standard Chartered India was the largest contributor to the group profits after Hong Kong. India was also the bank’s fastest growing market after Singapore.
Strengths and Strategy
Strengths
• Longstanding presence in growth markets
• Wide ranging products and services
• Retaining and developing talent
• Strong track record of strategic acquisitions
Strategy
• Sustaining organic momentum as a priority, with growth supplemented through selective acquisitions.
• Continuously improving the way the group’s works
• Building the Group’s leadership
• Reinforcing the brand
• Consumer Banking
• Wholesale Banking
Business divisions
Consumer Banking - Provides products and services to over 14 million customers, including individuals and SMEs in Asia, Africa and the Middle East.
Products and services - Banking services, deposit-taking services, credit cards, personal loans, mortgages, auto finance, Wealth Management services.
Major Markets - Hong Kong, Singapore, Malaysia, Indonesia, Korea, Pakistan, India, Taiwan, UAE.
Principal Customers - Individuals in Asia, Africa and the Middle East SMEs in its key Asian markets offers a range of deposit -taking, trade, lending and other banking services. In 2007, Consumer Banking launched Standard Chartered Private Bank to serve the growing demand for more specialized products and services tailored for high net-worth individuals in the Group’s markets.
Wholesale Banking - Business operations located in Singapore and a delivery footprint that spans its network. Standard Chartered’s Wholesale Banking business, a client-centered business, caters to corporate and institutional clients. The Group has strong cross-border capabilities and is well positioned to capitalize on international trade flows as a result of its broad geographical footprint. The Group works with local and global corporate looking to expand across its footprint, and corporate and financial institutions eager to further penetrate its markets from OECD (Organization for Economic Co-operation and Development) countries.
Products and services - Trade finance, cash management, securities services, foreign exchange and risk management, capital raising, corporate and principal finance solutions.
Markets - The Group’s emerging market network in Asia, Africa and the Middle East. This is complemented by a sales origination platform in India, the UK, the US, Australia and Japan.
Principal Customers - Multinational and large local corporations, banks, other financial institutions and medium sized local companies.
Location and Major Shareholders
Geographic markets
The 8 main geographic markets are as follows: India, Hong Kong, Singapore, South Korea, Other Asia Pacific including Malaysia, MESA, Africa and the Americas, the UK and Europe.
Promoter
The Company has no promoters and is professionally managed by the Board.
Major Shareholders
As at May 5th 2010 the following shareholders currently hold 3% or more of the Shares of the Company:
Shareholder Percentage of Shares held
Tease Holdings (Private) Limited* 18.38%
Blackrock, Inc 6.23%
Legal & General Group Plc 3.98%
* Tease Holdings (Private) Limited’s interest is held indirectly through Fullerton Management Pte Ltd and its subsidiaries and Dover Investments Pte Ltd.
What is an IDR?
Indian Depository Receipts (IDR) are derivative instruments like Global Depository Receipts (GDRs) and American depository receipts (ADRs) that have shares as the underlying assets. Indian companies raise capital overseas through ADRs and GDRs. The IDRs would allow foreign companies to raise capital in India. Like any other depository receipts IDRs are negotiable financial instruments, issued by a local depository against the shares of the foreign company's publicly-traded securities held by it.
The foreign company IDRs will deposit shares to an Indian depository. The depository would issue receipts to investors in India against these shares. The benefit of the underlying shares (like bonus, dividends etc) would accrue to the depository receipt holders in India.
Stand Chart IDR Issue
Standard Chartered Bank has started the process to raise around Rs 5,000 crores through an Indian Depository Receipts (IDR) issue in the local markets.
The Indian Depositary Receipts (IDRs) of Standard Chartered Plc, the country's first such issue, will open on May 25 and will close on May 28, top officials of the Anglo-Asian bank said in Mumbai on Thursday.
Standard Chartered will issue 240 million IDRs, with every 10 IDRs representing one share of Standard Chartered Plc., according to its red herring prospectus. Standard Chartered hopes to raise about US$600mn.
Standard Chartered is currently listed in Hong Kong and London.
The bank has hired UBS AG, Goldman Sachs, JM Financial Consultants, Bank of America-Merrill Lynch, Kotak Mahindra Capital and SBI Capital Markets to manage the offering.
StanChart has appointed its STCI Capital Markets unit as a co-book running lead manager.
Objects of the Issue
• To provide Indian investors with an opportunity to invest in the Company and participate in its growth. The Company has been established in India for many years, is committed to India’s future and believes that India will remain a growing and key market – the Issue demonstrates that commitment.
• To increase the market visibility and brand perception of the Company in India;
• To support growth across the Company’s businesses globally. The current economic circumstances and related market dislocation have presented unique opportunities to deploy capital into selected areas where the competitive environment, pricing levels and returns are particularly attractive.
• To widen the Company’s investor base and to provide a new source of capital.
IMP points to be noted
• IDRs can be purchased by any person who is resident in India as defined under FEMA.
• Minimum application amount in an IDR issue shall be Rs. 20,000.
Investments by Indian companies in IDRs shall not exceed the investment limits, if any, prescribed for them under applicable laws.
• In every issue of IDR—
(i) At least 50% of the IDRs issued shall be subscribed to by QIBs.
(ii) The balance 50% shall be available for subscription by non‐institutional.
Source: Business Standard, India Infoline, Hindu Business Line.
Report prepared by: Mr. Chintan Dedhia & Mr. Mayur Naik (Business Development Intern)
Thanks,
DENIP Consultants Pvt. Ltd.
what are your views on this ... .should the retail investors invest ?
ReplyDeleteYes Manan, retail investors should invest with not just listing gains perspective but a 1 year perspective as a global banking positional play.
ReplyDelete