Standard Chartered boosted its annual income and profitability forecasts as quarterly profit growth beat expectations on the strength of its transaction services, markets and wealth offerings, sending shares up sharply.
The London-based bank said Wednesday that pretax profit from its corporate and investment banking business climbed thanks to gains in transaction services and global markets, while that of its wealth and retail banking business increased due to higher income from investment and insurance products.
Standard Chartered, which generates much of its profit in Asia, raised its income guidance for 2026, projecting operating income growth above 5%-7% in constant currency terms, excluding notable items. It previously forecast growth around the middle of the range.
The bank said it expects to deliver a return on tangible equity of around 14% this year, up from its previous view of more than 12%.
"We have long believed that the structural shifts in trade, investment and wealth creation would create significant opportunities," Chief Executive Bill Winters said. "Our performance this quarter provides further evidence that we are capturing them."
The lender booked credit impairments of $90 million in the quarter ended September, smaller than $188 million in the year-earlier period. It recorded $34 million in net credit charges related to the Middle East conflict.
StanChart has significant operations in the United Arab Emirates and many Asian countries reliant on energy from the Middle East.
Shares listed in Hong Kong rose more than 8% following the results, bringing year-to-date gains to about 17%.
Under Winters, StanChart has focused on handling cross-border transactions and banking affluent customers in Asia and the Middle East. The bank has been investing in wealth and digital offerings, client centers and marketing to strengthen its business of serving affluent and international clients.
Winters in May unveiled financial targets, including a plan to cut support staff by more than 15% by 2030. That same month, the bank named Manus Costello as group chief financial officer, following the abrupt departure in February of Diego De Giorgi, who had been considered a front-runner to succeed the bank's longtime chief executive.
On Tuesday, rival HSBC Holdings reported slower-than-expected quarterly profit growth amid weakness in its business of catering to affluent clients, and announced a new share buyback of up to $1 billion.
StanChart's third-quarter net profit rose 46% from a year earlier to $1.50 billion, exceeding analysts' estimate of $1.23 billion in a poll by data provider Visible Alpha.
Pretax profit from its corporate and investment banking business rose 37% to $1.61 billion, while that of its wealth and retail banking business climbed 16% to $977 million.
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