Investec has reiterated its "buy" recommendation for Standard Chartered after the bank unveiled "quality" results on Tuesday morning.

Ian Gordon, an analyst at Investec, said: "Normalised EPS [earnings per share] of 225.2 cents is 2.0% ahead of consensus, stated profit before taxation of $6.9bn is in line. Revenues $19.1bn (+8.0% year-on-year), are in line. The dividend per share is up a massive 10.5% to 84 cents - in line with us, 3.0% ahead of consensus. Quality results from a quality bank. STAN is our top pick. Buy."

Gordon predicts delivery of double-digit EPS "will be a breeze"He added: "The outlook statement is reassuringly robust. In 2013, we believe that delivery against the 'usual' targets of double-digit revenue growth, flat jaws and double-digit EPS growth will be a breeze. Standard Chartered targets mid-teens stated return on equity in the medium term - we expect return on tangible equity to hit 15% in 2013. Such performance metrics have no comparator group!"

The group also reitered its 1,900p target price for StanChart, explaining that "as a unique, top-line led, high growth stock we regard the valuation as undemanding".

Snapshot: Standard CharteredStandard Chartered's results showed profit before taxation of $6.9bn in the year ended December 31st, up 1.0% from a year earlier.

Profit attributable to ordinary shareholders was flat at $4.8bn and operating income of $19bn was up 8.0%.

The bank reported that customer advances were up 6.0% to $289bn and customer deposits were up 10% to $390bn.

The dividend per share increased 10.5% to 84 cents per share. The tangible net asset value per share increased 12.1% to 1,519 cents. Standard Chartered had core tier one capital ratio of 11.7%.

MF

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