By Selena Li and Lawrence White HONG KONG/LONDON (Reuters) -Standard Chartered (StanChart) reported on Thursday a forecast-beating 3% increase in third-quarter profit and said it expected income growth at the top end of its guidance as strong wealth, global banking and markets businesses boosted revenue. The lender, which earns most of its revenue in emerging […]
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StanChart third-quarter profit beats estimates, lifts income outlook
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By Selena Li and Lawrence White
HONG KONG/LONDON (Reuters) -Standard Chartered (StanChart) reported on Thursday a forecast-beating 3% increase in third-quarter profit and said it expected income growth at the top end of its guidance as strong wealth, global banking and markets businesses boosted revenue.
The lender, which earns most of its revenue in emerging markets in Asia and Africa, reported pretax profit for the third quarter of $1.77 billion. That compared with $1.72 billion a year earlier and the $1.52 billion average of 14 analyst estimates compiled by the bank.
StanChart said it now expected income growth this year to be at the top end of its 5% to 7% guidance range. That means it will reach its goal of a 13% return on tangible equity, a key profitability metric, in 2025 rather than an earlier forecast of 2026.
Wealth management income shot up by 27%, with inflows and the number of new accounts rising on demand for wealth advice amid market volatility.
StanChart CEO Bill Winters said in a statement that a “sharper strategic focus on servicing our clients’ cross-border and affluent banking needs is paying off” with double-digit growth in wealth solutions and global banking.
(Reporting by Selena Li in Hong Kong and Lawrence White in London; Editing by Jamie Freed)