Standard Chartered raised its 2026 income growth and return on tangible equity targets after third-quarter pretax profit beat analyst estimates, with robust performances from its wealth and global markets divisions. The bank's Hong Kong-listed shares rose after the release.
Standard Chartered (StanChart) raised its income and profitability targets on Wednesday after third-quarter profit handily beat estimates. Robust performances from its wealth and global markets divisions accompanied the results.
Pretax profit jumps 27% past consensus
StanChart, which earns most of its revenue in Asia and Africa, said pretax profit for the July-September quarter surged 27% to $2.25 billion. That topped a consensus of $1.99 billion drawn from analyst estimates compiled by the bank.
The bank's Hong Kong-listed shares extended gains to be up 5.4% after the results.
Higher targets for 2026
StanChart lifted its full-year income growth target for 2026 to above 7%. Its earlier estimate sat in the middle of a 5-7% range. It also raised its return on tangible equity target, a key performance gauge, to above 14% from an earlier forecast of exceeding 12%.
According to Reuters, StanChart's guidance for returns of 14% in 2026 versus the 17% expected by rival HSBC shows it still has room to improve.
Wealth division posts another record
The wealth division delivered a third consecutive record quarter, with income up 26%, supported by broad-based momentum across products and geographies, the bank said.
StanChart has accelerated its wealth expansion plan, aiming to gain net new money inflows of $200 billion between 2025 and 2028, ahead of its original 2029 target.
Fee-based revenue, which is less sensitive to rate changes, surged 19% to $2.81 billion in the quarter from a year earlier. That was ahead of an average estimate of $2.68 billion.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
