Standard Chartered PLC (StanChart) reported a record-high first-quarter performance for 2026, highlighted by a 17.00 % year-on-year increase in profit before tax to USD 2.45 billion. Operating income rose 9.00 % to USD 5.90 billion, underpinned by robust growth in Wealth Solutions and Global Banking.
Revenue mix showed balanced momentum: net interest income edged up 1.00 % to USD 2.87 billion, while non-interest income advanced 16.00 % to USD 3.03 billion. Wealth Solutions delivered a record quarter, with income soaring 32.00 % on the back of a 39.00 % rise in investment-product revenue and a 22.00 % uplift in bancassurance. Global Banking income climbed 19.00 %, driven by higher origination volumes and stronger capital-markets activity.
Operating expenses were contained, increasing just 1.00 % to USD 3.14 billion, producing positive jaws of 8 percentage points and improving the cost-to-income ratio to 53.20 %. Credit-impairment charges rose to USD 296 million (annualised loan-loss rate of 0.32 %), reflecting a USD 190 million management overlay for heightened Middle-East geopolitical risks. Despite this, return on tangible equity improved by 260 basis points to 17.40 %.
Total assets expanded 11.25 % year-on-year to USD 972.91 billion. Customer loans increased 4.19 % to USD 293.56 billion, and customer deposits grew 10.46 % to USD 542.22 billion, keeping the advances-to-deposits ratio steady at 51.10 %. Risk-weighted assets reached USD 266.19 billion, up 5.00 % from March 2025, reflecting credit and market-risk growth.
StanChart’s capital position remained solid: the common equity Tier 1 ratio stood at 13.40 %, within management’s 13–14 % target range even after a 58-basis-point impact from the ongoing USD 1.50 billion share-buyback launched in February 2026. The liquidity coverage ratio was 151 %, comfortably above regulatory minima.
Earnings per share rose 31.00 % to 74.20 cents, buoyed by higher profitability and a reduced share count from buybacks. Tangible net asset value per share increased 10.17 % to USD 17.20.
Management reaffirmed full-year 2026 guidance: operating-income expansion at the lower end of the 5–7 % range (constant currency), broadly flat net-interest income, stable cost lines, and a statutory RoTE above 12 %.
Segment performance underscored the Group’s diversified engine: • Corporate & Investment Banking posted profit before tax of USD 1.73 billion, up 4.00 %, with Transaction Services income slightly lower but offset by record Global Banking fees. • Wealth & Retail Banking profit before tax surged 50.00 % to USD 0.98 billion, lifted by strong affluent-client inflows of USD 18.00 billion and Wealth Solutions momentum. • Central & other items recorded a pre-tax loss of USD 0.26 billion, widened by reduced venture-related income and associate losses.
Interim CFO Pete Burrill highlighted disciplined cost management, stable credit metrics and confidence in delivering 2026 targets despite macro-economic and geopolitical headwinds.
Comments