JPMorgan has released a research report stating that Standard Chartered (02888) delivered third-quarter results that significantly beat expectations, driven by strong core profit growth and lower impairment charges. Revenue, pre-provision operating profit, and profit before tax exceeded market consensus by 4%, 7%, and 13% respectively, with all business lines showing comprehensively strong performance. The bank reiterated its "Overweight" rating on Standard Chartered, keeping the target price unchanged at HK$310.
The report noted that net interest income came in 2% above market expectations, up 8% year-on-year and 3% quarter-on-quarter, benefiting from business volume growth and broadly stable net interest margins on a sequential basis. The group raised its net interest income growth guidance for the 2026 fiscal year to approximately 4%, above market expectations of about 3%.
Wealth management revenue grew 26% year-on-year, beating market expectations by 8%. Impairment provisions stood at US$90 million, 59% below market expectations.
Hong Kong business revenue rose 25% year-on-year, while pre-provision operating profit surged 50% year-on-year. JPMorgan expects that following the third-quarter results, market forecasts for 2026 fiscal year earnings per share will see low single-digit percentage point upgrades.
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