Standard Chartered Applies For Hong Kong Listing

by Carla Johnson, Investors Offshore.com

06 August 2001

The Standard Chartered Bank intends to list on the Hong Kong Stock Exchange this year and will issue new shares to international and professional investors, as well as a retail offering in Hong Kong, to the tune of £450 million.

Boosted by half-yearly results showing strong earnings, the Bank's chairman, Sir Patrick Gillam announced: 'We have recently filed an application with the Hong Kong Stock Exchange to list the Company's shares on the main board of the Exchange by way of a dual primary listing in addition to its existing primary listing in London. Subject to the approval of the Listing Committee of the Hong Kong Stock Exchange and market conditions, the listing is expected to take place in the fourth quarter of 2001.'

The share issue will be capped at 5% of the total share capital of the Bank. It is expected that the listing will not only create a wider shareholder base but Standard Chartered also hopes it will benefit from the recent surge in demand for investment opportunities by Asian investors.

According to the Bank's interim results 2001, trading profit has increase by 7% and operating profit is up by 22%. In addition, net revenue has improved by 24%, total loan growth by 21% and total deposits have increased by 11%.

In particular, the credit card market has proved hugely lucrative for the Bank. With around 5 million cards in circulation, Standard Chartered has enjoyed what Sir Patrick has described as 'outstanding balances - the key driver of profitability' of up to 78%. He added: 'We have also changed the geographic balance to tap the larger, fast-growing markets. Hong Kong remains our largest credit card market. Taiwan and India have also become major markets for us and are now in our top three. With the volume growth in this business, provisions have also increased as expected but, critically, revenue growth continues to outstrip growth in provisions.'

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