Standard Chartered today (21 February) posted a strong Q4, a $1.5bn buyback and healthy wealth management growth.
Q4 underlying operating income was $4.8bn vs $4.5bn expected while Q4 underlying profit before tax stood at $1.0bn vs $1.1bn expected. The buyback was $1.5bn vs $1.1bn expected.
José Viñals (pictured) group chairman of Standard Chartered said: “The strength of our performance reflects not only the progress we are making but stronger external confidence and understanding of our business.
"Throughout 2024, we made demonstrable progress in delivering on our strategy, as evidenced by our financial performance for the full year.
"Our high-growth markets, where we have prioritised investment, continue to deliver strongly and provide the basis for us to pursue our role as a super connector across the established and emerging global corridors of trade, investment and wealth.
"This performance was achieved in a year when the geopolitical environment saw the transition and transfer of power as roughly half the world’s population participated in the global election ‘super cycle’, with approximately two billion eligible voters in over 70 national elections."
He continued: "The refinement of our strategy announced with our Q3 2024 results brings together two complementary strengths of our business, which are well positioned as drivers of future growth: the pursuit of cross-border opportunities through our corporate and investment banking capability and network; and an unrelenting focus on the fast-growing affluent segment of clients through our leading wealth management offering."
The wealth and retail banking division (WRB) got a $1.5bn investment commitment in service of the affluent client segment which "underlines our role as a Bank that offers services throughout the full wealth continuum. We are targeting $200 billion in net new money and double-digit CAGR in Wealth Solutions income over the next five years, a business which saw a record performance in 2024, up 29 per cent at constant currency when compared with 2023, with double-digit growth in both Investment Products and Bancassurance."
On a personal note Viñals further said: "As I reach the end of my nine-year term and prepare to step down from the Board after this year’s Annual General Meeting(AGM), I am especially proud that my successor comes from our existing non-executives. I have every confidence that Maria Ramos will build on the constructive partnership we have built with the Group Management Team and in her ability to lead the Group in its next phase of growth."
In early reaction to the results, Matt Britzman, senior equity analyst, Hargreaves Lansdown said: “Standard’s latest quarter showed continued momentum, powered by a rock-solid top line and impairments that didn’t bite as hard as expected - a pattern we’ve seen across the UK’s banking giants lately.
"Of course, a $342 million software impairment muddied the picture, but it won’t impact capital levels - strip it out, and pre-tax profits crushed forecasts. Standard’s Asian flair, particularly its non-interest income strength, lit up the scoreboard with wealth management shining bright. That sector’s booming in Asia, and Standard’s ready to ride the wave.
"Standard’s flexing its capital muscle, announcing a hefty $4.9 billion in shareholders returns over the year, with the size of the latest $1.5 billion buyback a nice surprise.
He further said: "Still, despite the strong quarter, 2025 guidance only got a tiny bump, hitting the top of the prior range - echoing the lack of ambitious guidance from other UK bank bosses this week. Whether it’s savvy restraint or a whiff of trouble ahead, we’ll see. The lack of guidance upgrade is likely keeping a lid on the shares today, but the bottom line is that Standard’s in its best shape in years, with cost cuts still in the pipeline and an Asian wealth management business ready to fuel more growth.“
