Standard Chartered PLC reported double-digit profit growth for 2025 and unveiled a new $1.5 billion share buyback, but the bank's shares fell 2% on Tuesday amidst a wider selloff of the banking sector.
Operating income rose 6% to $20.9 billion as net interest income increased 1% to $11.2 billion and non-interest income climbed 13% to $9.7 billion, driven by wealth management, global banking and global markets divisions.
Underlying profit before tax rose 18% to $7.9 billion and underlying earnings per share jumped 37% to 229.7 cents. Return on tangible equity improved to 14.7%, up 300 basis points and ahead of its three-year target.
Operating expenses increased 4% to $12.3 billion. The credit impairment charge was $676 million.
The bank proposed a final dividend of 49 cents per share, taking the full-year payout to 61 cents, up 65%. A $1.5 billion share buyback will start imminently.
Loans to customers rose 5% and deposits increased 12%. The common equity tier 1 ratio stood at 14.1%.
In the fourth quarter, underlying profit before tax increased 19% to $1.2 billion on broadly flat income of $4.8 billion.
Analysts at Shore Capital noted that underlying PBT was weaker than consensus at the headline level, reflecting softer
markets income and higher costs, partly offset by better NII and impairments, with reported PBT also impacted by higher-than-expected restructuring charges.
However, shareholder distributions were stronger than expected, including a much higher dividend than expected.
"Updated guidance sees a sensible shift in focus to statutory RoTE given restructuring costs with management targeting >12% in FY26F vs. consensus currently at 11.7%."