The Standard Chartered plc Board is to announce an interim ordinary dividend of 12.3 cents per share, up 3.3 cents or 37 per cent, and announce a further $1.3 billion share buyback programme to commence imminently. This follows on from the $1.5 billion share buyback commenced in February 2025.
Other financial highlights include:
• Operating income of $5.5bn up 14% at constant currency (ccy), up 15% at ccy excluding notable1 items.
- Excluding $238m gain on the Solv India transaction with Jumbotail, income up 10% at ccy.
- Net interest income (NII) was broadly flat at ccy at $2.7bn.
- Non NII up 31% at ccy to $2.8bn, up 33% at ccy excluding notable items.
- Wealth Solutions up 20% at ccy, with double-digit growth in both Investment Products and Bancassurance.
- Global Markets up 47% at ccy, with strong performance in both flow and episodic income.
- Global Banking up 12% at ccy, driven by higher origination and distribution volumes, and increased capital markets activity.
• Operating expenses up 3% at ccy to $3bn, driven by targeted investments for business growth, and inflation, partly offset by efficiency saves.
• Credit impairment charge of $117m; Wealth & Retail Banking (WRB) charge of $153m up year-on-year albeit lower quarter-on-quarter due to reduction in some unsecured portfolios, partly offset by a $44m release in Corporate & Investment Banking (CIB).
- Loan-loss rate of 12 basis points (bps).
• Underlying profit before tax of $2.4bn, up 34% at ccy; reported profit before tax of $2.3bn, up 48% at ccy.
• Restructuring and other charges of $123m include $87m related to the Fit for Growth programme.
• Balance sheet remains strong, liquid and well diversified:
- Loans and advances to customers of $287bn up 2% since 31.03.25; up $1bn on an underlying basis, after adjusting for foreign exchange (FX), and Treasury and Global Markets securities backed lending activities.
- Customer deposits of $517bn up 5% since 31.03.25; up 4% at ccy; growth in CIB and WRB CASA and Term Deposits in WRB.
• Risk-weighted assets (RWA) of $260bn, up $6bn since 31.03.25.
- Credit risk RWA up $7.1bn; driven by FX translation, asset growth and mix, a sovereign downgrade, partly offset by optimisation activities. Reduction in Market risk RWA of $1bn.
• The Group remains strongly capitalised:
- Common Equity Tier 1 (CET1) ratio 14.3% (31.03.25: 13.8%).
- $1.3bn share buyback starting imminently is expected to reduce CET1 ratio by approximately 50bps.
- Tangible net asset value per share of $16.80, up 119 cents quarter-on-quarter.
• Return on Tangible Equity (RoTE) of 19.7%, up 7%pts.
