Fined bank seeks to reassure investors

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The Independent Online

Executives from Standard Chartered will publicly face investors for the first time tomorrow since the bank was made to pay $340m (£210m) to US regulators for breaking sanctions against Iran.

In webcast presentations from the emerging markets bank's London headquarters, the finance director, Richard Meddings, and key executives will seek to reassure investors that clients have remained loyal despite the fine.

Standard Chartered shares have recovered much of the 22 per cent crash they suffered after the shock of last month's clampdown by the New York State Department of Financial Services. They dropped from 1,567p to just 1,228.5p in just 48 hours. They have recovered to around 1,500p.

Tomorrow's long-standing investor day will not, however, address the outstanding US regulatory issues. The bank is expected to reach a settlement with the US Treasury, Department of Justice and Manhattan District Attorney over the Iran sanctions which is likely to be considerably less than the $340m it paid to the DFS.

Standard Chartered has yet to sign the final details with the DFS, although it is understood that the $340m payment also covers any infringements of sanctions against Libya, Myanmar and Sudan as well as the original Iran breaches.

Steve Bertamini, the head of consumer banking, will say that the bank expects to have reached 100 branches in both China and India by the time it publishes its full-year results in early 2013. He will also detail the speeding up of expansion in Africa, which is the least banked continent in the world but has one of the fastest-growing middle-class populations.

Simon Williams, a banking analyst at Daniel Stewart, said: "We expect the key message to underline Standard Chartered's continuing strong performance in its major markets." He has a share price target of 1,900p.