The Asia-, Africa- and Middle East-focused lender beat analyst estimates, lifted shareholder payouts and raised guidance after strong wealth management and global banking growth.
Standard Chartered reported first-half pretax profit of $4.78 billion, up 9% from $4.38 billion a year earlier and ahead of the $4.52 billion average estimate compiled from 16 analysts, as wealth management and global banking fees helped drive record operating income. Operating income rose 6% to $11.6 billion, with Wealth Solutions income up 38% and Global Banking revenue up 19%, while net interest income increased 4% to $5.7 billion and non-interest income climbed 8% to $5.9 billion. The bank declared an interim dividend of 20.4 U.S. cents per share, launched a new $1 billion share buyback and said it now expects full-year operating income growth around the middle of its 5% to 7% target range. The results also included a $446 million impairment charge linked to geopolitical uncertainty and potential spillovers from the Middle East conflict, including a $190 million management overlay set aside in April. Its Common Equity Tier 1 ratio stood at 14.2% at the end of June.