Standard Chartered Plc bank branch in Hong Kong
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Standard Chartered on Wednesday upgraded its 2024 earnings guidance as it delivered third-quarter profit that beat expectations, driven by a record performance in its wealth management division.
Here are Standard Chartered’s results compared to LSEG SmartEstimate, weighted against consistently more accurate analysts’ forecasts:
- Profit before tax: $1.81 vs $1.59 billion
The lender, which gets most of its revenue from Asia, saw pre-tax profits rise 37% from the $1.32 billion it posted a year ago.
Net interest income for the three months to September rose 9% year-on-year to $2.6 billion, compared with LSEG’s estimate of $2.57 billion.
Net interest margin, a measure of credit profitability, rose to 1.95%, compared to 1.63% a year ago.
After its second-quarter earnings report, Standard Chartered in July announced its largest share buyback of $1.5 billion. It did not announce any additional buybacks at the launch on Wednesday.
A day earlier, rival Asia-focused bank HSBC had announced a new $3 billion share buyback as it posted third-quarter earnings that beat analysts’ estimates on the back of strong revenue growth.
StanChart said in its half-year report that it has rapidly implemented a cost-cutting initiative called “Fit For Growth,” which is designed to save about $1.5 billion in costs over the next three years. The bank has identified more than 200 projects where savings can be made.
The London-headquartered bank also raised its 2024 earnings guidance on Wednesday with operating income rising 10% in 2024, from more than 7%.
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