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Standard Chartered PLC on Thursday said it expects to reach its guided return on tangible equity already in 2025 instead of by 2026, as it reported profit and non-net interest growth. The London-based, Asia and Africa-focused lender said pretax profit climbed 9.9% to $1.99 billion in the third quarter of 2025, from $1.81 billion a year ago. Underlying net interest income fell 1.2% to $2.74 billion from $2.77 billion. This was due to lower interest rates and margin compression, however pass-through rates remain actively managed, the firm said. Underlying non-net interest income rose 13% to $2.41 billion from $2.14 billion, with Standard Chartered citing a ‘strong’ performance in Wealth Solutions and Global Banking. This brings underlying operating income to $5.15 billion, up 5.0% from $4.90 billion a year ago. In Wealth Solutions, the firm hailed a ‘record quarter’ with income up 27%, boosted by performance in investment products. Meanwhile, Global Banking was up 23% amid higher origination and distribution volumes and increased capital markets activity. The common equity tier 1 ratio was 14.2% in the third quarter, unchanged on-year. Return on tangible equity was 10.5% in the third quarter,up compared to 10.0% a year prior. Return on ordinary shareholders’ tangible equity was 13.4%, higher than 10.8% a year ago. Looking ahead, Standard Chartered expects return on tangible equity around 13% in 2025 with progress thereafter, earlier than previously guided. When it had published its half-year results, it said it anticipated approaching a RoTE of 13% in 2026 with progress thereafter. Further, the company expects 2025 income growth towards the upper end of the 5% to 7% range at constant currency excluding notable items. It had previously guided it to be around the bottom of the range. All other guidance remained unchanged. Chief Executive Officer Bill Winters said: ‘We now expect to deliver an underlying return on tangible equity of around 13% in 2025, hitting our target a year earlier than planned. Progress is broad-based, but our sharper strategic focus on servicing our clients’ cross-border and affluent banking needs is paying off, with strong double-digit growth in Wealth Solutions and Global Banking, alongside good momentum in our Global Markets flow business.’ Standard Chartered shares were up 4.0% at HK$159.10 each on Thursday afternoon in Hong Kong. In London, they had closed 1.1% higher at 1,515.87 pence each on Wednesday, before the release of third quarter figures. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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