Standard Chartered PLC (LSE:STAN) got a boost from the good numbers from Asia-peer HSBC today ahead of its update tomorrow
UBS predicts underlying profits of US$1.37 billion and a CET1 ratio of 14.1% in its third quarter.
A buyback announcement is more likely at the year's end, adds the Swiss bank, with an update on strategic guidance possible from Standard something to watch for.
Of interest within this would be comments on the net interest income (NII) outlook in light of the US$ yield curve rally, loan growth outlook, wealth management revenue outlook in light of strong inflows and higher markets in Hong Kong and mainland China, capital market income generation, and a higher capital return target.
The firm had a $51bn structural hedge at the end of the first half and some US$20bn in fixed-rate mortgages.
Around a sixth of the structural hedge rolls every year notes UBS, with 2024 maturing yields lower than those coming up in 2025.
Management expects the hedge to increase in size to some US$60bn by the end of 2024 to help manage NII stability.
Shares today are up 2.4% at 886.8p pulled up by HSBC’s well-received update.