As Standard Chartered reports a fall in expected revenue growth for the year, Graham Spooner, investment research analyst at The Share Centre, explained what this means for investors.
"Standard Chartered updated the market ahead of full year results, reporting that revenue growth for 2011 is likely to be under 10%, down from the original double-digit prediction. This is largely down to falling Asian exchange rates in Q4.
“However, this setback isn't expected to have a major impact on the overall performance and the bank continues to anticipate double-digit growth in profit before tax.
"Although investor sentiment has been impacted by issues in the West, the consumer banking side of the business continues to drive good performance.
“Operations in Singapore, Hong Kong and China have helped offset weaker performance in India and Korea and the bank's plans for a recruitment drive remain.
"Investors will be pleased to hear Standard Chartered is still on track to deliver positive results despite difficult market conditions, largely due to its growth prospects in Asia and lack of exposure to sovereign debt problems in Europe.
“Investors looking to gain exposure to Asia and the emerging markets may want to look at Standard Chartered.
"The share price has seen a decline over the past year and now provides a more attractive entry point.
“However, as uncertainty in the market continues and concerns are being raised around Asia, we suggest only drip feeding into the stock at the moment."
