Standard Chartered rises as profit beats and guidance improves Proactive uses images sourced from Shutterstock
Standard Chartered PLC (LSE:STAN) shares rose 2.9% to 2,158p after second-quarter profit beat forecasts and the Asia-focused bank upgraded its full-year revenue guidance and unveiled a $1 billion buyback.
Chief executive Bill Winters said the performance “demonstrates the strength of our differentiated international network and the disciplined execution of our strategy”
He said the upgraded income guidance and new share buyback “reflect our confidence in the business”.
Pre-tax profit of $2.33 billion was 13% ahead of consensus, according to Shore Capital, while earnings per share of 77.4 cents beat expectations by 17%.
Operating income of $5.70 billion was 3% ahead, helped by net interest income of $2.87 billion and a 5% beat from non-interest income. Costs were 2% lower than forecast and credit impairments of $150 million were 37% below consensus.
Wealth Solutions led the performance, with income up 43% to $1.06 billion – 16% ahead of expectations. Jefferies highlighted that 60% of net new money went into investment products, compared with 20% a year earlier.
Standard Chartered raised its forecast for 2026 income growth to the midpoint of its 5%-7% range and now expects net interest income to rise by a low-single-digit percentage. It also announced a further $1 billion share buyback.
Jefferies described the bank’s cost discipline as “striking” and said the results showed “notable strength” in the mix of Wealth income.
However, Shore Capital retained its ‘sell’ recommendation, saying said consensus forecasts already reflected the upgraded guidance, limiting the potential for earnings upgrades.
With the shares trading well above Shore Capital’s 1,725p target, the broker warned that a “full valuation” could restrict further gains despite the strong results.