StanChart Q3 profit beats estimates, to hit return target early

StanChart Q3 profit beats estimates, to hit return target early

Standard Chartered (StanChart) said it would hit a key profitability target a year earlier than expected after posting a 3% increase in third-quarter earnings on the back of strong revenue in its wealth, global banking and markets businesses.

The London-headquartered lender, which earns most of its revenue in emerging markets in Asia and Africa, reported on Thursday a pretax profit for the third quarter of $1.77 billion. That compared with $1.72 billion a year earlier and beat the $1.52 billion average of 14 analyst estimates compiled by the bank.

StanChart said it now expected income growth this year to be at the top end of its 5% to 7% guidance range, whereas in July it had forecast results around the bottom end.

That means it will reach its goal of a 13% return on tangible equity, a key profitability metric, in 2025 rather than an earlier forecast of 2026.

The bank's Hong Kong-listed shares extended gains after the results release, rising more than 3%.

StanChart's results showed strong performance across its businesses, particularly in wealth management, and suggested the bank will likely upgrade its medium-term targets for 2026 and beyond when it reports full-year results in February, Jefferies analyst Joe Dickerson said.

StanChart CEO Bill Winters said in a statement that a "sharper strategic focus on servicing our clients' cross-border and affluent banking needs is paying off" with double-digit growth in wealth solutions and global banking.

Wealth management income shot up by 27% in the third quarter, with inflows and the number of new accounts rising on demand for wealth advice amid market volatility.

StanChart has said it will target $200 billion in new assets and double-digit growth in income from its wealth business over the next five years as part of its wider strategy to shift to higher-fee-earning businesses.

Non-interest income for the quarter rose 12% to $2.4 billion from a year ago, ahead of analysts' consensus of $2.3 billion.

The bank's capital markets and advisory fee income grew 33% during the period, as a rebound in corporate confidence drove increased mergers and acquisitions this year, despite tariffs and economic uncertainty.

StanChart's London-listed shares have risen 53% this year, outpacing a 37% gain for rival HSBC.