Standard Chartered Group (02888) announced first-half results ending June, reporting record pre-tax accounting profit of $4.784 billion, up 9.15% year-on-year. The bank raised its interim dividend 66% to 20.4 US cents per share and launched a $1 billion share buyback. The performance was driven by double-digit growth in Wealth Solutions and Global Banking businesses. Operating income reached a record $11.604 billion, up 6.4%, while net interest margin contracted 1 basis point to 2.04% amid a 4% rise in net interest income and 8% growth in non-interest income.
Standard Chartered Reports Record $4.784B Pre-Tax Profit for First Half
Standard Chartered's accounting basis pre-tax profit for the first half ending June reached $4.784 billion, an increase of 9.15% compared to the same period last year. The figure represents a record high for the bank. Tangible shareholders' equity return rose 120 basis points to 17.6%, reflecting increased accounting profit partially offset by higher average tangible equity and additional Tier 1 coupon costs. Basic earnings per share increased 17% to 152 cents.
Operating income for the period totaled $11.604 billion, up 6.4% year-on-year and marking a new record. Net interest income rose 4% to $5.7 billion, while non-interest income grew 8% to $5.9 billion. Net interest margin decreased 1 basis point to 2.04%. Operating expenses increased 1% during the period.
Dividend Increased 66% and $1B Share Buyback Launched
Standard Chartered declared an interim dividend of 20.4 US cents per share, representing a 66% increase. The bank stated that the upcoming $1 billion share buyback is expected to reduce the Common Equity Tier 1 capital ratio by 38 basis points. The bank had already executed $1.5 billion in share buybacks during the first half of the year.
Wealth Management and Corporate Banking Drive Revenue Growth
Both Wealth Solutions and Global Banking businesses recorded double-digit growth during the period. CEO Bill Winters stated that the record performance highlights the bank's unique international network advantage and disciplined strategy execution capabilities. Clients continued to conduct trade, investment, and wealth flows through Standard Chartered across multiple dynamic global markets.
Credit Impairment Rises to $446M on Middle East Provisions
Credit impairment expenses totaled $446 million for the first half, an increase of $110 million year-on-year. Of this amount, $296 million came from Wealth Management and Retail Banking, while $150 million originated from Corporate and Investment Banking. The increase was primarily due to general additional provisions related to Middle East conflicts.
Standard Chartered Revises 2026 Financial Targets
Standard Chartered revised its 2026 guidance. On a constant currency basis and excluding major significant items, operating income year-on-year growth is expected to be around the midpoint of the 5% to 7% range. Net interest income is projected to achieve low single-digit percentage year-on-year growth. Expenses are expected to be approximately $13.3 billion. Tangible shareholders' equity return is targeted to exceed 12%.
FAQ
What profit did Standard Chartered report for the first half ending June?
Standard Chartered reported record pre-tax accounting profit of $4.784 billion for the first half ending June, representing a 9.15% increase compared to the same period last year. Operating income reached $11.604 billion, up 6.4% year-on-year.
How much is Standard Chartered's share buyback and dividend increase?
Standard Chartered launched a $1 billion share buyback expected to reduce the Common Equity Tier 1 capital ratio by 38 basis points. The bank raised its interim dividend 66% to 20.4 US cents per share. The bank had already completed $1.5 billion in share buybacks during the first half.
What are Standard Chartered's financial targets for 2026?
Standard Chartered projects 2026 operating income growth around the midpoint of 5% to 7% on a constant currency basis excluding major items. Net interest income is expected to achieve low single-digit percentage growth. Expenses are projected at approximately $13.3 billion, with tangible shareholders' equity return targeted to exceed 12%.
