In the first quarter, Standard Chartered's basic pre-tax profit rose 7% to USD 2.277 billion

AASTOCKS
2025.05.02 04:03

Standard Chartered Group (02888.HK) announced its first-quarter results for the period ending March this year, with a basic pre-tax profit of USD 2.277 billion, an annual increase of 7%. On a reported basis, the pre-tax profit for the first quarter was USD 2.103 billion, an annual increase of 10%. The basic earnings per share for the first quarter were 62.7 cents, while the reported earnings per share were 56.6 cents.

During the period, operating income increased by 7% to USD 5.4 billion based on fixed exchange rates; net interest income increased by 7% to USD 2.8 billion; non-net interest income rose by 7% to USD 2.6 billion. Operating expenses increased by 5% to USD 2.9 billion. Meanwhile, credit impairment charges increased by 24% to USD 219 million, which included USD 179 million from wealth management and retail banking businesses, as well as other major expenses primarily from individual unsecured loan portfolios affected by rising interest rates.

Standard Chartered maintained its guidance for 2025 to 2026, including that, excluding the reclassification of deposit insurance, operating income is expected to increase at a compound annual growth rate of 5% to 7% from 2023 to 2026 (based on fixed exchange rates), and is currently gradually approaching the upper limit of this range; excluding significant projects, the growth expectation for 2025 will be below the range of 5% to 7% (based on fixed exchange rates); operating expenses for 2026 will be below USD 12.3 billion (based on fixed exchange rates), including the ongoing impact of the UK bank levy and the reclassification of deposit insurance; approximately USD 1.5 billion in total expenses will be saved through the "efficiency gain" program, with associated costs not exceeding USD 1.5 billion.

On the capital front, the group continues to operate flexibly within the target range of 13% to 14% for the common equity tier 1 capital ratio; plans to return at least USD 8 billion to shareholders cumulatively from 2024 to 2026; continues to increase the annual dividend per share over time; tangible return on equity is expected to approach 13% by 2026, and will continue to improve thereafter

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