(Oct 28): Standard Chartered plc reported third-quarter profit that beat analysts’ estimates, driven by record net inflows into its wealth unit and robust trading activity, prompting the lender to raise its annual income and return targets. The shares surged. 

Pretax profit rose 29% to US$2.25 billion (RM9.18 billion) in the period, the London-based bank said Wednesday in a statement, topping the US$2.09 billion average estimate compiled by Bloomberg. The lender raised its operating income growth forecast above a previous range of 5% to 7%, and now expects return on tangible equity to reach about 14% in 2026, up from more than 12%.

“The consistency and breadth of our performance reflects the strength of our franchise and disciplined execution across the group,” chief executive officer Bill Winters said in the statement. “This gives us confidence to raise our 2026 income guidance.”

The shares jumped as much as 8.7% in afternoon trading in Hong Kong, the most since February 2023.  

Net interest income is set to rise about 4% this year, up from the low single-digit gain guided in the previous quarter. The bank’s wealth unit lured a record $20 billion in net new money, while flow trading income climbed 21% amid active client dealing across foreign exchange, commodities, and credit.

Alongside key competitor HSBC Holdings plc, Standard Chartered has expanded its wealth business to capture an increasing share of assets from Asia’s growing mass-affluent population.

While broader credit impairments declined, the bank booked a US$34 million net overlay tied to tensions in the Middle East. 

Standard Chartered shares reached an all-time high in September before trimming gains over geopolitical concerns and potential UK bank levies.

The bank is partway through a US$1 billion share buyback that was announced in July and by the end of September, it had spent US$484 million buying back shares. 

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