Standard Chartered on Tuesday posted a 16 percent rise in full-year pre-tax profit, driven by strong performance in its global banking and wealth management divisions, but the results fell short of analysts’ expectations.
The London-headquartered lender, which generates the bulk of its income in Asia and Africa, reported pre-tax profit of $6.96 billion for the year, up from US$6.0 billion the previous year.
However, the figure missed the US$7.2 billion average forecast from 16 analysts surveyed by the bank, sending shares lower in early trading in Hong Kong.
Chief executive Bill Winters said the results reflected “continued momentum” in the bank’s strategy to focus on affluent clients, cross-border corporate banking and fast-growing emerging markets.
“Our diversified footprint across Asia, Africa and the Middle East positions us well to capture structural growth opportunities,” Winters said in a statement accompanying the earnings release.
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Revenue growth was supported by robust activity in the bank’s global banking unit, which benefited from higher interest rates and increased demand for trade finance and corporate lending. Wealth management also recorded strong inflows, particularly from affluent clients in Asia, as investors sought diversified portfolios amid volatile global markets.
Standard Chartered has been reshaping its business in recent years, exiting lower-return markets and doubling down on areas where it has competitive strength, including cross-border banking corridors linking Asia, Africa and the Middle East.
The bank said net interest income remained resilient despite expectations that global rate cuts could begin later this year. Higher rates over the past two years have bolstered margins for many lenders, although the outlook remains uncertain as central banks weigh slowing growth against persistent inflation risks.
Operating expenses rose during the year as the bank invested in technology, compliance and front-office hiring, partly offsetting revenue gains. The lender has faced ongoing pressure to manage costs while maintaining regulatory standards across multiple jurisdictions.
Analysts said that while the profit increase underscored solid underlying performance, the miss against forecasts suggested challenges in sustaining momentum amid a shifting macroeconomic backdrop.
“StanChart continues to benefit from its emerging markets exposure and wealth strategy, but investor expectations were running high,” said one Hong Kong-based banking analyst. “The earnings miss highlights the delicate balance between growth investment and cost control.”
The bank’s shares have rallied over the past year on optimism about Asia’s economic resilience and improving returns. However, they remain sensitive to swings in regional growth prospects, geopolitical tensions and currency movements.
Standard Chartered derives a significant portion of its revenue from Hong Kong and mainland China, making it exposed to fluctuations in the Chinese economy. Slower property sector activity and uneven recovery in consumer demand have weighed on broader sentiment in the region.
At the same time, the lender has been expanding its wealth platform in markets such as Singapore and the United Arab Emirates, targeting high-net-worth individuals and international investors seeking access to emerging markets.
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The bank did not announce major strategic shifts alongside its results but reiterated its medium-term targets, including ambitions to improve return on tangible equity and deliver sustainable income growth.
Investors will now look for further clarity on the outlook for interest rates, credit quality and capital returns, as global economic uncertainty and geopolitical risks continue to cloud the financial sector’s prospects.
Standard Chartered said it remains focused on disciplined capital allocation and prudent risk management as it navigates what it described as a “complex and evolving” operating environment.
