Standard Chartered (LON:STAN) shares climbed in early morning trading on Tuesday, after it announced that it would restart its dividend after a jump in annual profits.
The group cancelled its dividend in 2015 in order to rebalance its books, after chief executive Bill Winters took control of the bank. The decision to reinstate dividend payments came as Standard Chartered’s loan books grew 11.6 per cent last year, with operating income rising 2.6 per cent in the period to $14.4 billion after four years of consecutive declines.
“The transformation of the group continued in 2017 with the significant improvement in underlying profits, a strong capital position and emerging clarity on regulatory capital requirements allowing us to resume paying dividends,’ Winters said.
“We are encouraged by our start to 2018 and remain focused on realising the group’s full potential.”
Standard Chartered shares rose over three percent in the wake of the announcements on the Hong Kong market, and are currently trading up 1.44 percent in London.
