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Standard Chartered PLC on Thursday reported double-digit rises in both annual profit and income. The Asia-focused lender reported pretax profit of $4.29 billion in 2022, up 28% from $3.35 billion in 2021, as interest income jumped by nearly 50% to $15.25 billion from $10.25 billion. However, the bank had previously guided for a pretax profit of $4.73 billion. Net interest income grew by 12% to $7.59 billion from $6.81 billion a year earlier, with net interest margin standing at 1.41%, in line with guidance and up from 1.21% in 2021. Underlying operating income rose by 10%, or 15% at constant currency, to $16.26 billion from $14.71 billion, as underlying pretax profit increased by 13%, or 15% at constant currency, to $4.76 billion from $4.20 billion a year earlier. The company had previously guided for $16.31 billion in 2022. For the fourth quarter ended on December 31, it swung to a pretax profit of $123 million from a loss of $208 million the year before. Net interest income climbed 119% to $2.02 billion from $1.70 billion. This is in line with previous guidance. Diluted earnings per share amounts to 84.3 US cents, up 25% from 61.3 US cents a year ago. As at December 31, its common equity tier 1 capital amounted to $34.16 billion, down from $38.36 billion on the same date a year ago. CET 1 ratio was 14.0%, at the top of the 13% to 14% target range, compared to 14.1% a year earlier. StanChart declared a full-year dividend of 18 US cents, up 50% from 12 US cents a year prior. Chief Executive Officer Bill Winters said: ‘We have delivered a strong set of results in the fourth quarter and for the full-year 2022, with both income and profit before tax up 15%, and a return on tangible equity of 8.0%, up 120 basis points on 2021. We continue to make significant progress against the five strategic actions outlined last year, and we remain confident in the delivery of our financial targets. We are upgrading our expectations, and are now targeting a return on tangible equity approaching 10% in 2023, to exceed 11% in 2024, and to continue to grow thereafter.’ Looking ahead, Standard Chartered lender said it was optimistic about the reopening of China and for economic growth in Asia in the year ahead. For 2023 and 2023, it expects income to grow in the range of 8% to 10% at constant currency and excluding the debit valuation adjustment. Shares were up 3.1% at 752.00 pence each on Thursday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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