Standard Chartered Plc bank branch in Hong Kong
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Standard Chartered on Friday beat first-quarter profit expectations on the back of strong growth in its wealth management, global markets, and global banking businesses.
The bank’s reported profit before taxation for the three months ended in March was $2.103 billion, up from $1.91 billion in the same period a year ago.
Here are Standard Chartered’s first-quarter 2025 results compared with consensus estimates compiled by the bank.
- Profit before tax: $2.103 billion vs. $1.905 billion
- Underlying net interest income (NII): $2.796 billion vs. $2.796 billion
“We delivered a strong performance in the first quarter of 2025, with earnings per share up 19%, driven by double-digit income growth in Wealth Solutions, Global Markets and Global Banking,” Group Chief Executive Bill Winters said in a statement.
The bank’s Wealth Solutions division was a standout performer during the quarter, posting a 28% increase year-on-year in operating income.
Standard Chartered’s Global Markets business posted a 14% increase in operating income during the quarter, powered by strong growth in credit trading. The Global Banking division experienced a 17% increase in operating income.
The bank, however, booked a $219 million credit impairment charge in Q1, up 24% year-on-year, with the bulk stemming from its Wealth and Retail Banking division, where rising rates have begun to strain repayments in certain unsecured portfolios.
“Going forward, we can probably expect interest rates to come down, reducing such borrowers’ stress,” according to Michael Makdad, a senior equity analyst at Morningstar.
The earnings do not fully capture the impact of Trump’s tariffs, as the “reciprocal” tariffs announced in April were put on hold. However, levies on steel, aluminum and autos have been in effect since March.
Winters said that while the imposition of trade tariffs has increased global economic and geopolitical complexity, he was confident that the bank would continue to improve returns.
“Our presence in structurally high-growth markets across Asia, Africa and the Middle East is key to driving long-term sustainable value for our shareholders, and we remain focused on reinforcing these competitive advantages to drive future growth,” Winters said.
The bank also maintained its guidance for 2025 and 2026, projecting operating income to grow at a compound annual rate of 5–7% between 2023 and 2026, excluding the impact of the deposit insurance reclassification.
The set of earnings comes after Standard Chartered reported in February that annual profits in 2024 surged 18% on the back of record growth in its wealth unit and robust results from its markets division. The London-headquartered lender had called for a $1.5 billion share buyback after the full-year results were reported.
The bank is also currently undertaking a cost-saving initiative called “Fit for Growth,” which it rolled out in 2024. It aims to save roughly $1.5 billion over three years.
Just a few days earlier, Asia-focused rival bank HSBC announced a share buyback of up to $3 billion, which it aimed to complete before its 2025 interim results.
