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<Research>JPM Expects STANCHART (02888.HK) Litigation Settlement to Limit Shr Buyback Upside, but Keeps Investment View Unchanged
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STANCHART (02888.HK) waned 2% yesterday (8th), underperforming the HSI by 0.8 ppts, according to JPMorgan's research report. This may be related to Bloomberg's report that the Group reached a litigation settlement with investors in the UK for GBP1.5 billion (US$2 billion) over allegations of violating Iranian sanctions. Although STANCHART has not disclosed the actual settlement amount, the Company stated that the settlement would have little impact on the Group's operational results or financial condition. JPMorgan expected the related expenditure to be classified as a special item by STANCHART in 4Q25. Although it will not affect the DPS or normalized ROTE, the settlement may reduce the CET1 ratio and potentially limit the upside of share buybacks in 2026. However, the broker believed that the negative impact on the CET1 ratio will be less than approx. 13 bps. JPMorgan added that the above event does not change its investment view on STANCHART, and reiterated rating at Overweight for the stock, with a target price of $190. AASTOCKS Financial News Website: www.aastocks.com |
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