The share price has returned more than 16 percent this year, with management revising its outlook for return on average tangible equity following latest results.
Standard Chartered upgrades guidance after reporting earnings pickup
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Hong Kong-listed shares of Standard Chartered closed more than 7 percent higher on Wednesday after the bank announced its third quarter results which included revised guidance for the year.
Excluding notable items, operating income rose 14 percent to US$5.8 billion while net interest income gained US$3.0 billion driven in part by better volume and improved balance sheet mix. Non-interest income jumped 19 percent to US$2.8 billion, led by its wealth solutions and global markets business
[See more: HSBC announces additional US$1 billion in share buybacks, guidance unchanged]
Pretax profit gained 29 percent to US$2.3 billion while return on tangible equity (RoTE) expanded 520 basis points to 15.7 percent. Common Equity Tier 1 (CET1) ratio of 13.8 per cent slipped 31 basis points from the previous quarter.
Standard Chartered results: revised guidance
The bank results included revised 2026 guidance. Management now expects operating income growth to exceed its previous 5 to 7 percent range in constant currency terms with RoTE expanding to 14 percent from an original target of 12 percent.
The market value of Standard Chartered has risen more than 16 percent this year, outperforming the 9 percent gain for HSBC. HSBC reported its third-quarter earnings on Tuesday, disclosing an additional share buyback programme of up to US$1 billion alongside a third interim dividend of US$0.10 per share.
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The new repurchase scheme, expected to finish prior to full-year results, follows the successful execution of its previous US$1 billion programme in September. The bank’s third-quarter revenue rose 6 percent to US$18.6 billion, while pre-tax profit grew 32 percent to US$9.6 billion.
