- Closes branches that are not performing to par
Standard Chartered, was on the chopping block this week, losing 44 thebe as 223,064 of its stock crossed the board. The local bank’s share price took a major knock, depreciating by 8.9% to record a new 52 week low of 450 thebe. This is the lowest price the stock has had in the last 10 years of being listed on the exchange.
Standard Chartered, has in the several years posted increasingly declining profits and for the financial year ended December 2017, the group posted a loss of P189.3mn, a 337% decline from the previous year’s profit of P79.7mn. The management of the company has however noted that the loss came as a result of an impairment adjustment attributed to a single client.
The group has not been immune to the challenges faced in the banking sector and was further troubled when the central bank cut the bank rate to 5% in late 2017. Standard Chartered have indicated that they are going through a process of cutting their losses, which involves closing down a few of their local branches that are not performing to par throughout the country.
Speculators are wagering on the recovery of the stock and despite the losses, the company still has the highest dividend yield amongst its peers in the banking sector of the local exchange. (Motswedi Securities)