Standard Chartered's 2024 Earnings: A Tale of Two Metrics

Alright, folks, let's dive into the world of finance and talk about Standard Chartered's 2024 earnings. Now, I know what you're thinking, "Earnings? That sounds as exciting as watching paint dry." But bear with me, because this is a story of two metrics that don't quite see eye to eye.

First, let's talk about revenues. Standard Chartered's operating income grew by a solid 10% on an underlying basis in 2023, reaching a whopping $19,543 million. That's like finding a $100 bill on the ground – it's not life-changing, but it's still pretty darn good. This growth was driven by the bank's strategic initiatives, such as investing in the IFC's Global Trade Liquidity Programme and partnering with Atome to offer digital-first services across Asia. So, when it comes to revenues, Standard Chartered is doing just fine, thank you very much.

Now, let's switch gears and talk about earnings per share (EPS). Standard Chartered reported EPS of $0.29 for its fiscal quarter ending in December of 2024. That's a nice, round number, but it's not quite as impressive as the revenue growth we just discussed. The reported EPS is 39.2 cents higher than the underlying EPS of 141.3 cents. So, what gives?

Well, it turns out that the reported EPS includes non-underlying items, such as one-time gains or losses, and potential tax effects. These factors can make the reported EPS look a bit rosier than the underlying EPS. It's like when you're trying to impress your friends with your cooking skills, but you conveniently forget to mention that you used a pre-made sauce from a jar. Sure, the dish looks great, but it's not quite as impressive as you made it out to be.



So, what can we learn from this tale of two metrics? Well, it's important to look beyond the headline numbers and dig a little deeper to understand the full story. Just because a company's revenues are growing doesn't necessarily mean that its EPS will follow suit. There can be all sorts of factors at play, from non-underlying items to tax effects, that can impact the bottom line.

As investors, it's our job to ask questions, do our research, and make informed decisions. Don't just take the numbers at face value – dig deeper and find out what's really going on. Because, as we've seen with Standard Chartered, the story of a company's earnings can be a lot more nuanced than it first appears.

In conclusion, Standard Chartered's 2024 earnings are a mixed bag. Revenues are looking strong, thanks to the bank's strategic initiatives, but EPS is lagging behind. As investors, we need to be mindful of the factors that can impact a company's earnings and make sure we're looking beyond the headline numbers. Because, as the old saying goes, "If it sounds too good to be true, it probably is." So, keep your eyes peeled, ask questions, and make sure you're getting the full story. Your portfolio will thank you for it.