Standard Chartered beats first-quarter benefit expectancies on robust enlargement in wealth control

Standard Chartered on Friday reported first-quarter income that beat expectancies at the again of robust enlargement in its wealth control trade.

The financial institution’s reported benefit earlier than taxation for the 3 months resulted in March used to be $2.103 billion, up from $1.91 billion within the similar length a yr in the past.

Here are Standard Chartered’s first-quarter 2025 effects in comparison with consensus estimates compiled by way of the financial institution.

• Profit earlier than tax: $2.103 billion vs. $1.905 billion
• Underlying internet pastime source of revenue (NII): $2.796 billion vs. $2.796 billion

“We delivered a strong performance in the first quarter of 2025, with earnings per share up 19%, driven by double-digit income growth in Wealth Solutions, Global Markets and Global Banking,” Group Chief Executive Bill Winters mentioned in a commentary.

Investors cheered the consequences, with Hong Kong-listed stocks of the financial institution emerging 2.57% after the discharge of the income document.

The financial institution’s Wealth Solutions department used to be a standout performer right through the quarter, posting a 28% year-on-year build up in running source of revenue.

Standard Chartered’s Global Markets trade posted a 14% build up in running source of revenue right through the quarter, powered by way of robust enlargement in credit score buying and selling. The Global Banking department skilled a 17% build up in running source of revenue.

The financial institution, then again, booked a $219 million credit score impairment fee in Q1, up 24% year-on-year, with the majority stemming from its Wealth and Retail Banking department, the place emerging charges have begun to pressure repayments in positive unsecured portfolios.

“Going forward, we can probably expect interest rates to come down, reducing such borrowers’ stress,” in step with Michael Makdad, a senior fairness analyst at Morningstar.

The income don’t totally seize the affect of Trump’s price lists, because the “reciprocal” price lists introduced in April have been placed on cling. However, levies on metal, aluminum and automobiles had been in impact since March.

Winters mentioned that whilst the imposition of business price lists has higher world financial and geopolitical complexity, he used to be assured that the financial institution would proceed to support returns.

“Our presence in structurally high-growth markets across Asia, Africa and the Middle East is key to driving long-term sustainable value for our shareholders, and we remain focused on reinforcing these competitive advantages to drive future growth,” Winters mentioned.

The financial institution additionally maintained its steering for 2025 and 2026, projecting running source of revenue to develop at a compound annual charge of 5–7% between 2023 and 2026, with the exception of the affect of the deposit insurance coverage reclassification.

The set of income comes after Standard Chartered reported in February that annual earnings in 2024 surged 18% at the again of report enlargement in its wealth unit and powerful effects from its markets department. The London-headquartered lender had referred to as for a $1.5 billion percentage buyback after the full-year effects have been reported.

The financial institution could also be recently endeavor a cost-saving initiative referred to as “Fit for Growth,” which it rolled out in 2024. It objectives to avoid wasting more or less $1.5 billion over 3 years.

Just a couple of days previous, Asia-focused rival financial institution HSBC introduced a percentage buyback of as much as $3 billion, which it aimed to finish earlier than its 2025 period in-between effects.