...By Henry George for TDPel Media.
Standard Chartered bank has posted its best financial results since Q1 2014, making $1.7 billion (£13.7 billion) “as the group continues to benefit from rising interest rates”.
Standard Chartered is a UK-based multinational banking and financial services company that operates across the world, with a strong presence in Asia, Africa, and the Middle East.
The bank issued two profit warnings within six months of its 2014 results after a slowdown in emerging economies, from which it took years to recover, leading to job cuts.
Standard Chartered’s CEO, Bill Winters, highlighted that the success this year came despite wider uncertainty around the banking sector, following the collapses of Silicon Valley Bank and Credit Suisse.
He noted that “Business performance continues to improve across our markets and products and has been achieved in what continues to be an uncertain environment”.
AJ Bell investment director Russ Mould attributed Standard Chartered’s success to the Chinese reopening after lockdowns.
He said, “The shares rallied in Asia after the release of the figures, despite ongoing worries over US regional banks after another collapse in First Republic’s share price and wider macroeconomic concerns, but if anything, right now, Standard Chartered is enjoying a macro tailwind thanks to the reopening of China and Hong Kong after three years of lockdowns.”
Standard Chartered plans to return $5 billion to shareholders by 2024, having already announced a $1 billion buyback after its annual results.
The bank now expects income for the year to rise by 10%, on the upper end of its previous expectations.
The shares are slightly up to 623.8p today, having jumped to as high as 790.8p in February following reports of a potential takeover by First Abu Dhabi Bank.
However, the shares fell back to earth when the Middle Eastern lender said it was not considering an offer.
Standard Chartered’s financial results indicate a positive outlook for the banking sector amidst ongoing economic uncertainty.
The bank’s strong presence in Asia, Africa, and the Middle East positions it to benefit from the gradual reopening of these economies following the COVID-19 pandemic.
The bank’s plans to return $5 billion to shareholders by 2024 is also a positive sign for investors, indicating confidence in future growth and profitability.