Standard Chartered sets new share buyback after profit beats consensus
Standard Chartered PLC on Thursday announced a new $1.3 billion share buyback as it reported a rise in second quarter earnings amid a strong period for its wealth management offering.
The company also raised its dividend and boosted its outlook.
The Asia-focused banking firm said pretax profit in the three months to the end of June increased 44% on-year to a consensus-topping $2.28 billion from $1.58 billion a year prior. A pretax profit outcome of $1.73 billion was expected, according to company-compiled consensus.
Underlying operating income climbed 15% to $5.51 billion from $4.81 billion a year prior, amid largely flat net interest income and a 33% rise non interest income.
The net interest margin weakened on-year to 1.98% from 2.03%.
‘Our strong first-half performance reflects continued successful execution of our strategy, through our focus on cross-border and affluent banking. We delivered record net new money in the second quarter, alongside double-digit income growth in Wealth Solutions, Global Markets and Global Banking. Through our unique network across Asia, Africa and the Middle East, we offer our clients the means to navigate volatile external conditions,’ Chief Executive Bill Winters said.
StanChart hailed a ‘record’ $16 billion in net new money from affluent clients during the quarter. In its Wealth & Retail Banking segment, operating income rose 4.0% on-year in the second quarter to $2.05 billion.
Corporate & Investment Banking operating income was 9.4% higher at $3.26 billion from $2.98 billion. Within the unit, it saw ‘record Global Markets income’.
StanChart announced a new $1.3 billion share buyback, which is ‘starting imminently’. In addition, it announced a 37% hike to its interim dividend to 12.3 cents per share from 9 cents.
Looking ahead, the bank expects 2025 operating income, excluding notable items, to rise by around the bottom of its 5% and 7% range at constant currency. It upgraded its outlook after previously expecting income growth ‘e below the 5-7% range’.
Shares in the company were up 0.2% to HK$143.90 in Hong Kong late Thursday afternoon.
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