Standard Chartered PLC announced a new $1.3 billion share buyback, set to begin imminently, following a 37% increase in its interim dividend to 12.3 cents per share. This move comes after the bank reported a significant rise in second-quarter earnings, beating analyst consensus. Shares in the company were up 0.2% to HKD143.90 in Hong Kong, reflecting positive market reaction to the news.
The Asia-focused banking firm reported a pretax profit of $2.28 billion for the three months ending June, a 44% year-on-year increase and considerably higher than the expected $1.73 billion. Underlying operating income climbed 15% to $5.51 billion, benefiting from a 33% rise in non-interest income. Net interest income remained largely flat, and the net interest margin slightly weakened to 1.98% from 2.03%.
CEO Bill Winters attributed the strong performance to successful execution of their strategy, particularly in cross-border and affluent banking. The bank reported a "record" $16 billion in net new money from affluent clients during the quarter, with double-digit income growth in Wealth Solutions, Global Markets, and Global Banking. Standard Chartered also upgraded its outlook, expecting 2025 operating income, excluding notable items, to grow by the lower end of its 5%-7% range at constant currency, a more optimistic forecast than previously indicated.
