SCBFF - Standard Chartered: Better Looking Banks Elsewhere

2024-02-01 02:36:51 ET

Summary

• Standard Chartered shares have fallen 19% since September 2023, and the outlook for banking remains questionable.
• The bank's strengths include its brand recognition, geographic reach, existing customer base, and profitable margins.
• Weaknesses include a lack of critical mass in many markets, a track record of underperformance, and potential risks in China's property market.

U.K. based international bank Standard Chartered (SCBFF) is a share I let go from my portfolio last year. I do not see any fundamental problems with the bank (which has a long history and is solidly in the black) but see no compelling reason to invest even at the current valuation. In the banking sector, I think there are other banks with a more focused, proven strategy and consistent delivery that also trade at cheap-looking valuations right now....

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