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Mia Castagnone

Standard Chartered, one of Hong Kong’s three currency issuers, announced a multibillion-dollar share buy-back programme amid a rise in pre-tax profits driven by its wealth business.
The London-headquartered bank, which derives most of its business in Asia, reported a 15 per cent increase in second-quarter pre-tax profit to US$1.8 billion, beating analysts’ estimates of US$1.6 billion.
The bank said it would repurchase a record US$1.5 billion of shares as it looks to return a total of US$5 billion to shareholders by 2026.
“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,” CEO Bill Winters said in an earnings statement to the Hong Kong stock exchange on Tuesday.

Cross-border business activity also showed particularly strong growth from each of the regions, Winters added in a media briefing later.
On questions about the upcoming US election, Winters said both the Biden and Trump administrations had been hawkish on China, adding that he was “not worried” if either party wins, as Beijing continues to reform and open up its economy.
“The bank has managed to support China in its reforms, and while geopolitical tensions are bad for sentiment, we aren’t worried,” said Winters.
“We have a very special position in China as the bank that is connecting China to rest the rest of the world and vice versa. And that feels like a really good place for us to be right now. So we have no plans to change our investment base in China at all.”
Net interest income for the three months to June rose 6 per cent to US$2.6 billion, as the bank benefited from treasury operations. The bank’s net interest margin grew to 1.93 per cent versus 1.71 per cent a year earlier amid elevated interest rates globally.
Second-quarter operating income, the equivalent of revenue in US accounting terms, rose 6 per cent year on year to US$4.8 billion.
While global interest rates are expected to come down in the short term, the bank is not seeing any significant stress, thanks to its strong balance sheet, Diego De Giorgi, group CFO told the media briefing.
The bank’s wealth unit performed admirably, growing 25 per cent year on year to US$618 million, benefiting from the launch of new products and addition of rich clients.
Net new sales more than doubled to US$13 billion and wealth assets under management at the end of June stood at US$135 billion, an increase of 12 per cent since the end of last year, the filings showed.
Standard Chartered also upgraded its income guidance for the full year. It expects operating income to rise more than above 7 per cent. The company previously expected operating income to increase in the 5 per cent to 7 per cent range for 2024. Net interest income for the year is forecast at US$10 billion to US$10.25 billion at constant currency.
The bank announced an interim dividend of 9 US cents per share.
Standard Chartered shares, which fell 1.9 per cent before the earnings report at the midday lunch break, ended 4.9 per cent higher at HK$76.90.


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The Hong Kong-listed bank, which reported a 15 per cent increase in second-quarter pre-tax profit to US$1.8 billion, said it would buy-back US$1.5 billion of shares


The Hong Kong-listed bank, which reported a 15 per cent increase in second-quarter pre-tax profit to US$1.8 billion, said it would buy-back US$1.5 billion of shares.


Standard Chartered Bank

Wealth management

Hong Kong company reporting season

Global interest rates