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Standard Chartered Bank’s 2017 profit jumps; shares up close to 3 percent

Column Chartered Bank said Tuesday its 2017 underlying pre-tax profit lurched to $3.01 billion — handily beating estimates thanks to rising captivate rates and efforts to streamline operations.

The latest full-year underlying profit by the bank was 175 percent capital than the $1.093 billion posted one year ago in 2016, and better than the $2.978 billion standard in the main projection by analysts in a Reuters poll.

Stanchart also proposed a full-year dividend of 11 cents, after it kept doing so in 2016.

“The trebling of underlying profits, a strong capital position and emerging regulatory distinctness allows us to resume paying dividends,” Bill Winters, Stanchart’s accumulation chief executive, said in a statement accompanying the earnings announcement.

The grouping chairman, Jose Vinals, said in the same statement that the billet “understands the importance of the ordinary dividend to shareholders and intends to increase the detailed year dividend per share over time.”

The bank’s Hong Kong-listed dues traded 2.7 percent higher at 1:05 p.m. HK/SIN following the release of Stanchart’s past due earnings report.

Investors had been expecting the bank to resume reimburse b bribe dividends given its better business prospects in 2017.

“I think the company can grant at least a symbolic dividend payout ratio of something like 10 U.S. cents per ration,” Ronald Wan, non-executive chairman at Partners Financial Holdings, told CNBC in preference to the release of the bank’s latest earnings.

“I think a lot of investors are running out of sufferance. If we are to continue our investments in Standard Chartered, it has to do something about its dividend procedure … If Standard Chartered cannot resume its dividend policy, a lot of investors purposefulness shift to other major banks,” Wan added.

HSBC is often considered as Stanchart’s closest rival as both are banks based in the U.K. but conduct much of their issue internationally, with a heavy focus on Asia.

HSBC, the largest bank in Europe by assets, averred last week a 141.4 percent jump in reported pre-tax profit to $17.17 billion in the year 2017. Its narrative revenue for the year was $51.4 billion, up 7 percent from the previous year.

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