Standard Chartered Q3 Pre-tax Profit Surges; Lifts FY Operating Income View, Distribution Target

(RTTNews) – British lending major Standard Chartered Plc (SCBFF.PK, STAC.L, STAN.L) reported Wednesday significantly higher profit before tax in its third quarter, benefited by strong performance in Wealth Solutions and Global Markets business.

Looking ahead to fiscal 2024, the company upgraded income guidance while all other outlook remain unchanged.

Operating income for the year is now expected to increase towards 10 percent in 2024 at constant currency rates, excluding the two notable items. The company previously expected operating income to grow above 7 percent at constant currency rates.

Net interest income for 2024 is still expected to be $10 billion to $10.25 billion, at constant currency.

Further, the Bank revised 2025 and 2026 guidance, and now expects operating income to increase 5-7 percent CAGR in 2023-2026 at ccy, while 2025 growth is expected to be below the 5-7 percent range at ccy.

The company also raised 2026 RoTE target to approaching 13 percent from previous view of 12 percent.

In addition, Standard Chartered now plans to return at least $8 billion to shareholders cumulative 2024-2026, higher than previous guidance for at least $5 billion.

For the third quarter, the company reported profit before taxation of $1.72 billion, up 172 percent from last year’s $633 million. Profit attributable to ordinary shareholders was $931 million, compared to last year’s loss of $35 million.

Earnings per share were 36.8 cents, compared to last year’s loss of 1.3 cents.

Underlying profit before tax was $1.81 billion, 37 percent higher than $1.32 billion a year ago. Underlying earnings per share were 39.8 cents, compared to prior year’s 23.2 cents.

Operating income for the quarter grew 9 percent to $4.95 billion from last year’s $4.52 billion. Underlying operating income went up 11 percent on a reported basis and 12 percent at constant currency to $4.90 billion.

Underlying net interest income grew 9 percent from the prior year to $2.61 billion.

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Source : Nasdaq

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