The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Is StanChart the right buy for your Asia portfolio| Deal Insight | Banking Insight |

*Watch the monday update again for the Goldman call going bearish on S&P soon to be followed by select Bullish calls on Emerging Markets by Mid Q2 at the latest

StanChart ripe for your Asia portfolio

Richard Meddings’ departure from the CFO post at StanChart has managed to bring the bank’s valuation down to 1.2x according to an FT report. With strong presence in Asia and despite the pressures in Trade Finance or in India where its lending portfolio has been deprioritized for the majority of the crisis ( lending at 12%) Meddings was obviouslly turned down for the Top Post but Risk management defense apparently failed with regulators last quarter

Apparently StanC , that bought ANZ here in India in 1995 may well go to the Aussie lender in its new avatar and I was not arly in making this recommendation to the US players. The bank is listed on mutiple Asian stock exchanes but is headquartered in London with a Market Capitalisation of USD 50 Bln after the year’s battering shares 20% lower in 2013

Temasek holds an important stake in the bank which it bough on with the overvalued real estate investments at the start of the crisis. The Nomura note floated in Asia looks for a near 40% premium on the transaction, but a deterring list of eager buyers is only likely to protract negotiations and those looking for a stock only transaction ( easiest , earliest, everyday) unlikely to be the fell swoop for buyers ( not necessarily because they are increasingly dogged by activist shareholders )

The winner takes the best Transaction Finance franchise in Asia and EMEA behind HSBC wth HSBC also  taking clients at competitive rates back from the bank in 2013

Advertisements

Information

This entry was posted on January 21, 2014 by in Financial Markets.

Archives

%d bloggers like this: