Its earnings are increasingly driven by fast-growing Asian and Middle Eastern wealth markets, with profits rising and capital returns accelerating.

That combination suggests the bank is moving into a new phase of growth, yet the market has not yet reflected this, in my view.

So, where should the shares be trading right now?

The engines powering growth

Ultimately, earnings (‘profits’) drive any company’s share price higher over the long run. A risk to Standard Chartered is any prolonged downturn in the global economy. This could hit its fee-based wealth market operations. Nonetheless, analysts forecast that its earnings will grow by an average 8.6% a year over the medium term at least.

This looks well-supported to me by its recent (24 February) full-year 2025 results. Operating income rose 6% year on year to $20.9bn (£15.5bn), underlining the strength of its cross-border and wealth-focused strategy.

Net interest income edged 1% higher to $11.2bn, as volume growth offset margin pressure from lower rates. Non-interest income increased 13% to $9.7bn, driven by a 24% surge in Wealth Solutions and double-digit gains in Global Banking and Global Markets.

Underlying profit before tax climbed 18% to $7.9bn, while return on tangible equity (ROTE) improved to 14.1%. Taken together, these highlight the bank’s strengthening profitability and the growing contribution from its affluent‑client franchise.

What’s the stock really worth?

Price and value are not the same thing in a stock. The former is whatever the market will pay at any point. The latter reflects the true worth of the underlying business, expressed as ‘fair value’ per share.

To gauge Standard Chartered’s ‘fair value’, I ran a discounted cash flow (DCF) analysis. This projects a company’s future cash flows and then discounts them back to today. It also reflects consensus analysts’ earnings growth forecasts for the bank.

Some analysts’ DCF modelling is more bearish than mine, depending on the inputs used. However, based on my DCF assumptions — including an 8.4% discount rate — Standard Chartered is 34% undervalued at its current £18.36 price.

Therefore, the fair value of the shares is £27.81 — considerably higher than today.

This gap between its current price and its fair value is crucial for the profits of long-term investors. This is because share prices can trade towards their fair value in the long run.

So the big gap between Standard Chartered’s price and its fair value suggests a potentially superb buying opportunity to consider today if those DCF assumptions hold.

My investment view

I already hold two banking sector stocks — HSBC and NatWest. So, owning another would disturb the risk-reward balance of my portfolio.

However, if I did not have this problem, I would buy Standard Chartered now. It is positioned strongly in a structurally advantageous franchise in the fastest-growing wealth markets in the world.

It has strong capital, rising ROTE, and a clear runway for multi-year growth in Wealth, Global Banking and Markets.

So, for other investors without my portfolio concerns, I think it well worth some attention.

The post Around £18 now, why does this FTSE 100 banking gem look a bargain to me anywhere below £27.81? appeared first on The Motley Fool UK.

A five-year rise of 258% eclipses even NatWest‘s storming 205% over the same period. Standard’s focus is on wealth management in Asia, Africa and the Middle East. And there’s surely great promise there.

While those areas do bring geopolitical risk, wealth in the regions is rising strongly. And it helped boost underlying profit before tax by 18% in 2025 — as reported Tuesday (24 February). The final quarter did fall a little short of analyst expectations. And Standard Chartered shares lost around 1% in early trading.

New share buyback

The standout is a new share buyback, of $1.5bn — adding to $2.8bn already announced during 2025. It seems Standard Chartered is throwing off a lot of cash — and there’s enough to lift the full-year dividend by 65% too. At 61 cents (around 45.3p) per share, it means a yield of 2.5% on the previous day’s close.

That’s well below the best the FTSE 100 banks have to offer. Again, NatWest comes out on top, with a 5.3% yield on the cards. Still, there are different ways to return cash to shareholders.

Standard’s buyback approach should increase future per-share measures, like earnings. And that, in turn, can boost share prices further. Whether it’s by share price growth or by dividend income, total returns are what matter.

A cracking year

In the words of CEO Bill Winters: “2025 was another year of strong momentum. We achieved an underlying return on tangible equity of 14.7%, exceeding our three-year plan a full year early.“

The bank saw net interest income rise 1% to $11.2bn. That might not look like a big increase. But in these days of global inflation generally falling, I’d say it’s a positive sign of reliable profitability.

Over the year, Standard Chartered saw 24% growth in operating income from its Wealth Solutions division. Global Banking brought in a 15% rise over 2024 too. The focus appears to be paying off.

At the bottom line, underlying earnings per share (EPS) climbed 37% to 170p. That puts Standard Chartered shares on a trailing price-to-earnings (P/E) ratio of 10.7. Is that, perhaps, fully valued? Or is there room for more?

Next few years

The big jump in earnings per share puts that valuation below analyst expectations — they had it up around 12. What’s more, they forecast a further 15% EPS rise between now and 2027. That could drop the P/E to only a bit over nine by then, which I find attractive.

I still expect some volatility. It’s an unavoidable risk with any investment based on emerging markets.

But with the developing world hopefully pulling further away from the post-Covid economic slump, I rate Standard Chartered as one to consider for the long term.

The post Standard Chartered shares are tops in FTSE 100 bank growth. These results show why appeared first on The Motley Fool UK.

Following a deep restructuring, capital strengthening, and strategic refocusing, the bank outgrew this narrative. But the share price does not appear to have caught up with this reality. So how much of a bargain does the bank look right now?

Ghosts of the past

Before Bill Winters became CEO in 2015, Standard Chartered’s EM operations exposed it to geopolitical tension and recurring compliance failures. US-China relations worsened, Chinese growth slowed, and several EM currencies became highly volatile. Sanctions risks in certain markets added further pressure and damaged confidence in the bank’s controls.

However, Winters strengthened sanctions systems, enhanced regulatory monitoring, raised capital, improved core equity ratios, and reduced weaker exposures. He then pushed the bank into refocusing on fee-based rather than interest-based business, so reshaping the earnings-growth profile.

The upshot is that today’s Standard Chartered bears little resemblance to the institution that once drew market caution. Some risks remain, especially those linked to China’s relationship with the US.

Even so, consensus analysts’ forecasts indicate the bank’s earnings (profits) will grow 7.8% a year to end-2028. And it is this that drives any company’s share price over the long term.

Changes reflected in results

Its H1 2025 results, released on 31 July, reflected this business shift. The fee-based Wealth Solutions, Global Markets, and Global Banking divisions each recorded double-digit income growth. These powered a 26% year-on-year rise in underlying pre-tax profit to $4.383bn (£3.27bn), well above analysts’ $3.83bn consensus forecast.

The previous full-year 2024 results showed the same pattern as underlying pre-tax profit jumped 20% to $6.8bn. Wealth Solutions delivered a record performance, with income up 29% and net new money rising 61% to $44bn. Global Markets and Global Banking also recorded strong 15% income growth.

How undervalued is it?

In my experience as a former investment bank trader, discounted cash flow (DCF) analysis is the optimal way to ascertain a share’s true worth.

It estimates a company’s ‘fair value’ by projecting its future cash flows and then ‘discounting’ them back to today. The more uncertain those earnings are, the higher the return investors demand and the greater the discount applied.

Some analysts’ DCF modelling is more bearish than mine, and some more bullish, depending on the inputs used. However, based on my DCF assumptions — including an 8.4% discount rate — Standard Chartered is 32% at its current £18.70 price.

Therefore, its fair value could secretly be close to £27.50 a share.

My investment view

I have long wanted to buy Standard Chartered shares, but my portfolio’s risk/reward balance will still not quite allow it. I already own two bank stocks — NatWest and HSBC — so owning another would unsettle that equilibrium.

However, I believe the market still is not pricing in the bank that has emerged under Winters. Given this, and the strong earnings growth expected by analysts, I think the shares merit serious consideration from other investors.

The post At a bargain-basement valuation under £19, is it time for me to buy this FTSE 100 banking gem? appeared first on The Motley Fool UK.

Yet despite last year’s impressive gains, some British blue-chips crushed the returns delivered by the broader FTSE. Take Fresnillo (LSE:FRES), Standard Chartered (LSE:STAN) and Babcock International (LSE:BAB). Their share prices soared by 83% or more over the course of last year.

But can these high-power shares repeat the trick in 2026? Could they even beat last year’s stunning returns? Let’s take a look.

Silver surge

Fresnillo was far and away the FTSE 100’s greatest performer last year. It rose by a spectacular 403%, driven by a robust year for gold and silver prices — these rose 65% and 150%, respectively.

Holding gold stocks carries greater risk than investing in physical metal itself. Production issues that can damage earnings are a constant threat to mining stocks.

But as Fresnillo shows, it can also lead to supersized gains, as producers’ profits can grow far more strongly when metal prices rise.

I’m not expecting gold and silver to rise as strongly in 2026. But I’m prepared for further significant gains, as economic and geopolitical uncertainty boosts safe-haven assets again.

I’m also predicting another tough year for the US dollar, which should drive gold and silver demand. A weaker greenback makes it even more cost effective to buy dollar-denominated assets.

Banking giant

Standard Chartered’s share price soared 83% in 2025. It may experience some bumpiness this year if China’s economy falters. But I’m still expecting another strong performance in 2026, as — broadly speaking — its Asian and African markets continue to rebound from their post-pandemic hangover.

StanChart, as it’s known, operates a wide range of product lines and across many countries. As such, it has substantial opportunities to grow profits as wealth levels in its developed regions boom.

This was illustrated in October, when the bank said it expects 2025 operating income to rise at the “upper end” of a 5% to 7% guidance range.

A cash-rich balance sheet gives it plenty of scope to invest for growth. It may also lead to more substantial share buybacks, giving the bank’s share price an added lift.

In the top 3

Babcock International was also one of the FTSE 100’s top three risers in 2025, increasing 143% in value. It took off as investors finally recognised its excellent value relative to the broader defence sector and piled in.

Despite this, Babcock shares still offer excellent value right now. This could help its share price surge again, and especially given the strong outlook for the global defence industry.

A Russia-Ukraine peace deal is welcome following years of bloody conflict. It could impact the performance of contractors like this in the near term.

But it’s unlikely to derail NATO countries’ aims to rapidly rearm amid rising concerns over Moscow’s foreign policy, along with potential Chinese expansionism. So I’m expecting Babcock’s sales (which rose 7% organically between April and September) to keep climbing.

The post Up 83%+ last year, will these FTSE 100 shares do it all again in 2026? appeared first on The Motley Fool UK.

However, the two metrics are different, so the bullish run does not mean there’s no value is left in the stock. Price is just whatever the market will pay for a share at any given point. But value reflects the true worth of a business, based on its fundamentals.

In my experience, big profits can come from the gap between the two measures. This is because asset prices tend to converge to their true worth over time.

To ascertain if a price-to-value gap exists in Standard Chartered’s case, I re-examined the business and ran the key numbers.

A strong core business?

Ultimately, it is earnings (or profits) growth that drives any firm’s share price (and dividends) higher over the long term.

A risk comes from intense competition in the sector that may reduce its profit margins.

That said, analysts forecast that its earnings will grow by 7.6% a year to end-2027.

Its recent sets of results look to support such a view, in my opinion.

Its full-year 2024 results released on 21 February showed a 20% year-on-year jump in underlying pre-tax profit to $6.8bn (£5.2bn).

This occurred after the bank shifted its focus to fee-based rather than interest-based business following a decline in rates in several markets.

Most notable here was a record performance from its Wealth Solutions business. This saw a 29% rise in income growth and net new money increase by 61% to $44bn.

The fee-based Global Markets and the Global Banking businesses also saw strong income growth of 15%.

The H1 2025 results, released on 31 July, told the same story. Wealth Solutions, Global Markets, and Global Banking divisions each recorded double-digit income growth.  

These in turn powered a 26% rise in underlying pre-tax profit to $4.383bn, far outstripping analysts’ forecasts of $3.83bn.

What’s the bank’s outlook?

On 30 October, the bank’s Q3 results were released, which saw underlying pre-tax profit jump 10% to $1.985bn.

Fee-based business grew by 12%, driven by Wealth Solutions and Global Banking.

Standard Chartered now expects that it will reach its goal of a 13% return on tangible equity (ROTE) this year. Previously, it had not expected to do so until the end of 2026.

Like return on equity, ROTE is calculated by dividing the company’s net income by average shareholders’ equity. However, ROTE excludes intangible elements such as goodwill.

The price-to-value gap

In my opinion, the best way to ascertain the true value of any stock is through discounted cash flow analysis.

It clearly identifies the price at which any share should trade, based on cash flow forecasts for the underlying business.

In Standard Chartered’s case, it shows the shares are 32% undervalued at their current £15.62 price.

The result is a fair value figure of £22.97.

I already hold two banking stocks – HSBC and NatWest – so owning another would upset the risk-reward balance of my portfolio.

That said, given its strong earnings growth prospects and deep undervaluation, I think the stock is a bargain worthy of other investors’ consideration.

The post Here’s why this FTSE 100 star still looks a bargain to me, despite trading at a 12-year high of £15+ appeared first on The Motley Fool UK.

But ignoring Standard Chartered means turning up our noses at a 215% share price gain over the past five years. And it’s up 60% in 2025 alone. Let’s see what third-quarter results tell us.

Hitting targets

In a 30 October update, CEO Bill Winters said: “We now expect to deliver an underlying return on tangible equity of around 13% in 2025, hitting our target a year earlier than planned.”

Operating income rose 5% from the same quarter a year ago, to $5.1bn. Net interest income dipped 1% to $2.7bn. But that seems like a solid performance to me, considering global interest rates have mostly fallen in the past 12 months.

For me, liquidity is a crunch measure when it comes to valuing bank shares. It’s what brought the world’s banking system to its knees in the 2008 financial crisis, after all.

On that score, a Common Equity Tier 1 (CET1) ratio of 14.2% looks very healthy to me. It’s a measure of a bank’s highest-quality capital which is relatively quickly accessible, compared to total risk-weighted assets.

Cash cow?

Dividends are modest by FTSE 100 bank sector standards, with a forecast yield of only 2%. And that’s going to keep away some investors. But Standard Chartered has been repurchasing its own shares too, which should boost future per-share earnings and dividends.

The bank is part-way through a $1.3bn buyback announced in July. Oh, and that strong CET1 ratio allows for the completion of the entire buyback, even though we were only at the $413m mark on results day on 30 September. So the bank seems to be a bit healthier than that figures suggests.

The big question is whether we’ve missed the boat, or does the Standard Chartered share price still make it one to consider for the long term?

Corporate risk

I think we do need to look at the different risks involved in retail and corporate banking. Corporate banking failures drove the 2008 crash. The way investments in that world can be chopped, changed, repackaged and sold on hid an insidiously creeping crunch in liquidity that with hindsight seemed inevitable.

Can we be sure the lessons have been learned and the banking system won’t stretch to breaking point again? We can’t be sure, no. And whether we’ll see something similar again is a definite maybe. The risk is far from over.

We do have much tighter liquidity regulations these days… but the Trump administration seems keen to unwind them.

Bottom line

For me though, corporate banking risk lies hand in hand with profit opportunities. The shares are on a forward price-to-earnings (P/E) ratio of 11, dropping to eight based on 2027 forecasts. At that valuation, Standard Chartered could be one to consider for the long term.

The post The Standard Chartered share price has soared, and Q3 results hint at why appeared first on The Motley Fool UK.

Clearly, that’s a very strong return over a short period of time. And investors will have received dividends during that period.

However, it’s worth noting that while I’ve generally been rather bullish on the bank, there was one point when I was a little nervous.

With Donald Trump back in the White House, his renewed push for tariffs — particularly around the so-called Liberation Day — made me uneasy about Standard Chartered’s heavy exposure to developing markets.

The bank’s growth depends on trade flows across Asia, Africa, and the Middle East, and any escalation in protectionism threatens to slow those economies.

Among other things, I was worried that these tariffs could disrupt supply chains, weaken export revenues, and dampen credit demand in key regions. And it did seem for a while that some of Standard Chartered’s key markets were the focus of Trump’s ire.

Despite these concerns, the bank’s share price has gone from strength to strength. Worries about bad credit exposure and falling demand appear to have been misplaced.

That doesn’t mean it won’t be an issue in the future — the full impact of Trump’s trade policies may not be perfectly understood for some time.

What does the valuation tell us?

Standard Chartered’s valuation looks reasonable given its earnings trajectory, though it’s not especially cheap compared to peers.

Based on current estimates, the bank trades on a forward price-to-earnings (P/E) ratio of around 10.2 times for 2025. This falls to 9.3 times for 2026, and 7.5 times for 2027. That implies analysts expect strong earnings growth. Earnings per share are forecast to rise from $1.87 in 2025 to $2.54 by 2027.

The dividend yield is expected to remain moderate, at 2.3% in 2025, 2.6% in 2026, and 2.9% in 2027.

While the payout ratio stays below 25%, the prospective yield is lower than that of Lloyds, which offers a more generous return to shareholders.

Still, the valuation multiples reflect Standard Chartered’s emerging markets bias — higher growth potential but also higher perceived risk.

The shares trade below book value for much of the forecast horizon, suggesting lingering investor caution.

Although the earnings outlook is encouraging, with forecast profit growth outpacing many UK-listed peers, the income case is less compelling. Overall, the stock appears attractively valued for growth-oriented investors, but less so for those prioritising income in the near term.

The bottom line

It’s certainly worth considering, and it’s also worthwhile given that Standard Chartered could outperform UK-focused banks like Lloyds beyond the forecast period.

Personally, my favourite in the sector to add to a watchlist is currently Arbuthnot. It’s hard to compare as Arbuthnot is much smaller.

However, the value proposition of Arbuthnot is stronger than its FTSE 100 peers. Size accounts for some of that, but not all.

Arbuthnot’s edge lies in its ability to grow lending prudently and its high-wealth clientele — typically more resilient in economic downturns.

While its smaller size is a risk, its private and commercial banking focus captures clients often under-served by larger peers, while its low loan-to-deposit ratio supports stability.

That combination could drive outperformance relative to its current valuation.

The post £20,000 invested in Standard Chartered shares 1 year ago is now worth… appeared first on The Motley Fool UK.

Growth

Investors don’t need to scour the FTSE 250 or small cap indexes to discover excellent growth stocks. Games Workshop (LSE:GAW) is a FTSE-listed company with a long track record of spectacular profits growth behind it.

The games manufacturer has a mammoth 2,570% share price rise over the past decade. In my opinion, it has scope for further significant growth, too, though product release timings mean City analysts expect a rare profits drop this year.

The global tabletop gaming market is tipped to surge over the medium-to-long term. Analysts at Fortune Market Insights have predicted annualised growth of 10.6% between now and 2032.

As the market leader in the booming fantasy wargaming segment, Warhammer-maker Games Workshop is in great shape to exploit this opportunity. Encouragingly, it’s branching out with its IP licensing operation to boost interest further, not to mention generate substantial revenues in its own right. A monster TV and film deal has recently been signed with Amazon.

Be mindful, though, that Games Workshop shares trade on a forward price-to-earnings (P/E) ratio north of 28 times. This sort of high valuation might leave the company vulnerable to a price correction if its growth prospects begin to weaken.

Dividends

Real estate investment trust (REIT) Segro (LSE:SGRO) is set up to deliver a large and reliable passive income to investors. Sector rules state at least 90% of average annual rental earnings must be paid out in dividends.

This doesn’t make its dividends bulletproof, though. Earnings can disappoint if economic conditions worsen, weighing on shareholder payouts. Segro’s portfolio is focused on cyclical logistics and industrial sectors.

However, the company’s large and diversified tenant base helps protect it from individual shocks. It has 1,369 different customers spread across eight countries. It also has its tenants locked down on multi-year contracts, providing added security.

For 2025 and 2026, Segro’s dividend yield is a healthy 4.6% and 5%, ahead of the broader FTSE 100 index’s 3.1%.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Value

Standard Chartered (LSE:STAN) has been one of the index’s strongest performers this year, rising 49% in value. Yet, based on expected profits, it still looks a steal to me.

Surging trade in its Asian and African emerging markets means City brokers expect earnings to increase 36% in 2025. This leaves the bank trading on a modest P/E ratio of 10.3 times, alongside a knockdown price-to-earnings growth (PEG) multiple of 0.3.

There are substantial threats to current earnings projections, having said that. Trade tariffs are taking the wind out of China’s export-led economy, a major growth market for StanChart. It also faces intense competition from digital-led challenger banks.

However, it’s my view that such dangers are more than factored into the bank’s low valuation. I’m confident Standard Chartered shares will deliver excellent long-term returns, as rapid population and wealth growth in its territories supercharges the banking sector.

The post 3 great growth, dividend, and value shares from the FTSE 100 index! appeared first on The Motley Fool UK.

Yet, despite these strong rises, I believe scores of top Footsie-listed shares still look dirt cheap at today’s prices. Here are three I think deserve serious attention as we move into October.

Standard Chartered

Standard Chartered‘s (LSE:STAN) share price has risen an incredible 47% so far in 2025. Only high-flying Lloyds shares have outperformed the emerging markets company from the banking sector.

Yet, it still offers brilliant value in my view, with a forward price-to-earnings (P/E) ratio of 9.7 times. Its P/E-to-growth (PEG) ratio is also below the bargain watermark of one, at 0.5.

The risks to StanChart are high given problems in China’s property sector and tariff threats to Asian economies. But the long-term earnings opportunities are also significant as wealth levels in Asia and Africa rocket.

Encouragingly, the bank is making progress in asset management and investment banking, areas which stand to gain particularly strongly from these regions’ booming middle classes. I don’t think these opportunities are reflected in the bank’s current low valuation.

Mondi

Mondi‘s (LSE:MNDI) share price has tanked 13% since 1 January. This reflects tough trading conditions, and the threat of enduring problems should weak growth and trade tariffs impact global trade.

But I think this drop merits serious attention from value investors. The packaging manufacturer’s PEG ratio sits at a seriously low 0.1 for this year.

And it remains below 1 through the next few years, coming in at 0.4 and 0.9 for 2026 and 2027, respectively.

Mondi’s dividend yields for the period also range from 5.9% to 6%.

Mondi’s not without risks, but acquisitions and capacity increases across its portfolio leave it placed to capitalise on a cyclical upturn. Over the long term, the packaging industry looks set for robust long-term growth as e-commerce drives greater volumes of boxes and other packaging materials. This sector giant is in one of the box seats (no pun intended) to benefit from this.

GSK

GSK (LSE:GSK) shares have risen 11% in the year to date. But compared to the broader pharmaceuticals sector, the company still looks dirt cheap, its forward P/E ratio at a modest 9.5 times.

FTSE 100 rival AstraZeneca, for instance, trades on a much meatier 16.3 times.

Fears abound over GSK’s drugs pipeline versus its peers, posing questions over future earnings. But heavy R&D investment leaves it looking in its strongest position for years — the business is targeting 15 major product launches between now and 2031. This gives it significant earnings possibilities as global healthcare investment soars.

GSK shares also offer a blue-chip-busting 4.3% dividend yield right now, offering an added sweetener from a value angle.

The post 3 mega-cheap FTSE 100 shares that demand attention in October appeared first on The Motley Fool UK.

Some investors might see this trend as unstoppable and seek to jump on the buying bandwagon. Others may think it cannot possibly continue much longer and avoid the stock.

Neither view is conducive to making big long-term profits from stock investment, in my experience. This comprises three decades as a private investor and several years as a senior investment bank trader before that.

The only question I ask in such a situation is whether there is any value left in the share. So, is there in this case?

The valuation proposition

The best way I have found to ascertain whether value remains in a share is the discounted cash flow method. This pinpoints where any stock price should trade, derived from cash flow forecasts for the underlying business.

In Standard Chartered’s case, it shows the shares are 32% undervalued at their current £14.49 price.

Therefore, their fair value is £21.31.

Secondary confirmations of this under-pricing are also seen in comparative valuations with its peers.

For example, the bank’s 2.2 price-to-sales ratio is joint lowest in its competitor group, which averages 3. These banks consist of Barclays at 2.2, Lloyds at 2.7, NatWest at 2.8, and HSBC at 4.3.

Standard Chartered is also cheap on the price-to-earnings ratio, trading at 10 against a peer average of 10.7.

And the same applies to its 0.9 price-to-book ratio against the 1.1 average of its competitor group.

How does the underlying business look?

As the interest rate forecasts in key Western markets declined, Standard Chartered modified its business strategy. It placed more emphasis on expanding its fee-based business rather than on its interest-based operations.

Consequently, Q1 2025 results saw year-on-year double-digit income increases in its fee-based Wealth Solutions, Global Markets and Global Banking operations. This helped power a 12% jump in underlying profit before tax of $2.3bn (£1.7bn) over the period.

In Q2, income growth in Wealth Solutions surged 20%, in Global Markets 47%, and in Global Banking 12%. This drove a 34% surge in underlying profit before tax over the quarter of $2.4bn.

A risk here is a global economic slowdown, perhaps as a result of uncertainty over US tariffs. After all, any bank’s business broadly reflects the economic health of the countries in which it operates.

However, consensus analysts’ forecasts are that Standard Chartered’s earnings will rise by 5.6% a year to end-2027. And it is precisely this growth that drives any company’s share price (and dividends) over time.

My investment view

I already own shares in HSBC and NatWest, and having another would unbalance my portfolio.

But I do not wish to sell either of them, as they are performing well. They also have higher dividend yields than Standard Chartered, which is important to me as I am aged over 50. This means I am looking to maximise my dividend income so I can keep reducing my working commitments.

That said, given its strong results, solid earnings growth prospects and significant undervaluation, I think Standard Chartered is well worth other investors’ consideration.

The post Despite trading around a 12-year high, this FTSE 100 bank stock still looks like a bargain-basement gem to me appeared first on The Motley Fool UK.