StanChart earnings jump 16% on strong wealth management

(Sharecast News) - Asia and Africa-focused bank Standard Chartered on Tuesday reported a 16% rise in annual earnings on the back of a strong performance at its wealth management division. Pre-tax profit came in at $6.96bn, compared with $6bn a year earlier and fell slightly short of the $7.2bn forecast by analysts in a company-compiled poll. StanChart also unveiled a $1.5bn share buyback to start immediately.

Net interest income - the difference between loan earnings and payouts on deposits - grew 1% to $11.2bn due to lower interest rates. Earnings from fees and commission rose to $5.35bn from $4.62bn a year earlier.

Wealth management income jumped 24%, driven by growth in investment products and bancassurance, while the global banking division, which provides services to cross-border clients, reported a 15% income increase on the back of higher business volumes and higher capital markets activity.

Underlying return on tangible equity, a key banking metric, rose to 14.7%, exceeding the lenders three-year target of 13% a full year early. The bank said it was now aiming for greater than 12% this year on a statutory basis.

"We have made a good start to the year and continue to benefit from a supportive business environment. We are seeing robust growth in our larger markets, and structural shifts in global trade and investment play to our distinctive strengths serving our clients' cross-border and affluent banking needs," said chief executive Bill Winters.

For 2026, StanChart forecast operating income growth at the lower end of a 5% - 7% range on a constant currency basis, excluding notable items, with net interest income growth likely to be broadly flat.

Reporting by Frank Prenesti for Sharecast.com