30th Jul 2024 10:44
(Alliance News) - Standard Chartered PLC on Tuesday upgraded its annual financial guidance for income growth for 2024, and also announced its largest every buyback.
The London-based, Asia-focused bank reported operating income of USD9.79 billion in the first half, a 7.3% increase from USD9.13 billion. Net interest margin increased to 1.85% from 1.67%.
Pretax profit rose to USD3.96 billion, up 20% from USD3.31 billion a year prior.
StanChart recorded an underlying credit impairment charge of USD240 million during the half, compared to USD161 million a year before.
"We produced a strong set of results for the first half of the year, demonstrating the value of our franchise as a cross-border corporate and investment bank and a leading wealth manager for affluent clients. We generated double-digit income growth, with positive momentum continuing into the second quarter, and with continued discipline in managing our expenses," said Chief Executive Officer Bill Winters.
Also on Tuesday, the firm announced its largest every share buyback of USD1.5 billion.
Starting "imminently", the buyback - alongside an interim dividend - brings shareholders returns since last year's results to USD2.7 billion. This marks progress on the way to Standard Charter's target of at least USD5 billion for 2024 to 2026.
This buyback follows a USD1 billion share buyback that was completed in the first half.
The firm reaffirmed its previous guidance for 2024 as a whole, except for income guidance, which was upgraded.
Operating income is expected to increase above 7% in 2024, while net interest income is expected to be between USD10 billion and USD10.25 billion.
In February, Standard Chartered had guided for operating income to increase between 5% and 7% in the period from 2024 to 2026, and around the top of this range in 2024.
Shares in StanChart were up 6.0% to 770.40 pence each in London on Tuesday morning, having closed up 4.9% at HKD76.90 in Hong Kong.
By Holly Beveridge, Alliance News senior reporter
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