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Investing.com-- Standard Chartered PLC (LON:STAN) reported a robust financial performance for 2024 with underlying profit rising 21%, driven by strong growth in its wealth management and corporate banking divisions.
The bank also announced a $1.5 billion share buyback program and a proposed final dividend of 28 cents per share, bringing total shareholder distributions since the 2023 full-year results to $4.9 billion.
The company’s underlying profit before tax for the year ended December 31 rose 21% to $6.8 billion.
The London-based lender, which focuses on Asia, Africa, and the Middle East, saw operating income increase by 14% to $19.7 billion on a constant currency basis.
Wealth Solutions income surged 29%, while Global Markets and Global Banking both recorded double-digit growth, up 15% each.
The bank’s return on tangible equity (RoTE) improved to 11.7%, up 160 basis points from the previous year, and it remains on track to achieve its 2026 target of approaching 13%, the company said.
Hong Kong-listed StanChart shares edged up 0.2% after the results as of 05:25 GMT.
Group Chief Executive Bill Winters attributed the strong performance to the bank’s strategy of combining cross-border capabilities for corporate clients with wealth management expertise for customers.
The company plans to return at least $8 billion to shareholders cumulative 2024 to 2026, it said.
Looking ahead, Standard Chartered expects operating income to grow at a compound annual growth rate (CAGR) of 5-7% from 2023 to 2026, excluding notable items.
The bank also anticipates maintaining a Common Equity Tier 1 (CET1) ratio within its target range of 13-14%, despite the upcoming $1.5 billion share buyback, which is expected to reduce the CET1 ratio by approximately 61 basis points.
The bank’s outlook remains optimistic, with growth in its key markets across Asia, Africa, and the Middle East expected to outpace global growth.
Standard Chartered also highlighted its commitment to sustainable finance, with income from this segment rising 36% to $982 million, nearing its 2025 target of over $1 billion.