This article first appeared on GuruFocus.

Operating Income: $5.7 billion, up 3% year-on-year, or 8% excluding the Solv transaction gain.

Earnings Per Share: Up 17% year-on-year.

Profit Before Tax: $2.3 billion.

Return on Tangible Equity (RoTE): 17.9%.

Net Tangible Asset Value Per Share: $7.55, up 4% year-on-year.

Net Interest Income (NII): Up 1% quarter-on-quarter.

Noninterest Income: Up 9% year-on-year, excluding the Solv India transaction gain.

Expenses: Broadly flat year-on-year, up 3% excluding notable items.

Credit Impairment: $150 million, with a loan loss rate of 26 basis points for the first half.

Customer Loans and Advances Growth: 2% underlying growth in the quarter, 5.7% year-to-date.

Risk-Weighted Assets (RWAs): Down $4.7 billion or 2% quarter-on-quarter.

CET1 Ratio: 14.2%.

Wealth Solutions Income: $1.1 billion, up 43% year-on-year.

Corporate and Investment Banking (CIB) Income: $3.3 billion, up 2% year-on-year.

Share Buyback: Announcing a $1 billion share buyback.

Interim Dividend: $0.204 per share.

Release Date: July 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Standard Chartered PLC (SCBFF) delivered a record first half performance with earnings per share up 17% year-on-year.

The company announced a $1 billion share buyback and an interim dividend of $0.204 per share, reflecting strong capital position and shareholder returns.

Wealth Solutions delivered another record quarter with income of $1.1 billion, up 43% year-on-year, driven by broad-based performance across geographies and products.

The company upgraded its 2026 income guidance to be around the middle of the 5% to 7% growth range, indicating confidence in its strategy and business model.

Standard Chartered PLC (SCBFF) maintained a strong return on tangible equity of 17.9% for the quarter, showcasing effective capital management and profitability.

Negative Points

The company took $44 million of additional management overlays due to tensions in the Middle East, indicating potential geopolitical risks.

Profit from associates was lower, mainly due to changes in recognizing the group’s share of Bohai’s profit, impacting overall profitability.

Net interest income was up only 1% quarter-on-quarter, with rate and margin headwinds partially offsetting volume growth.

The company expects a shift in deposit mix towards term deposits as rates rise, which could impact net interest income growth.

Credit impairment for the quarter was $150 million, including overlays related to the Middle East conflict, highlighting ongoing credit risk concerns.

Story Continues

Q & A Highlights

Q: Bill, you were in the media earlier talking about the China crackdown on compliance. Are you seeing any spillover in the legitimate banking and insurance channels? A: Bill Winters, Group Chief Executive: We have always focused on compliance, which gives us a competitive advantage. We haven’t seen any change in activity due to the crackdown, as we are compliant by nature. Our focus remains on helping Chinese clients broaden their investment opportunities while adhering to compliance rules.

Q: Could you discuss the gross movement into Stage 2 assets and the impact of the Middle East conflict? A: Manus Costello, Group Chief Financial Officer: The movement into Stage 2 assets is due to overlays related to the Middle East conflict. This is a precautionary measure and not indicative of a significant increase in credit risk.

Q: On capital, you’ve had a reduction in RWA this quarter. Can you explain the dynamics and your approach to capital return? A: Bill Winters: The RWA reduction is expected to reverse in the second half due to business growth and operational risk-weighted assets. We regularly assess the mix of dividends and buybacks, and we’re comfortable with our current capital return strategy.

Q: Can you unpack the wealth trends, particularly the disparity between investment products and bancassurance growth? A: Bill Winters: The strong growth in investment products is due to a risk-on environment, while bancassurance growth remains solid. The product mix and market sentiment influence margins, and we expect flexibility in our cost base if revenue growth slows.

Q: On net interest income, your guidance seems conservative. Can you elaborate on the factors affecting this? A: Manus Costello: We expect volume growth but also a shift in deposit mix towards term deposits, impacting margins. The guidance reflects a cautious approach given the current rate environment and business exits.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.