Standard Chartered shares hit ten-year high ahead of results
Shares in Standard Chartered climbed to a ten-year high as the bank geared up to post its annual results on Friday.
City analysts have pencilled in a full-year profit before tax of $6.2bn (£4.9bn), with the bank expected to pocket $983m (£780m) in the fourth quarter, down on the $1.1bn (£872m) posted in the fourth quarter of 2023.
The FTSE 100 lender’s stock has climbed over 90 per cent in the last year, bolstered by a record performance in its wealth management business.
In its third-quarter results, the bank posted a $1.72bn (£1.4bn) pre-tax profit, which was nearly triple the $633m (£500m) accumulated in the same period in 2023.
Richard Hunter, head of markets at interactive investor, said: “It has been a strong reporting season to date and hopes will be for Standard to round off proceedings in some style.
“Again, expectations will be high and focus is likely to fall on its Wealth offering and Asian exposure.”
Wealth business is ‘crown jewel’
Standard Chartered set out a new strategy in the third quarter after announcing it would double investment in its wealth management arm.
The London-headquartered bank announced it aimed to redirect funds from its retail business and invest around $1.5bn (£1.2bn) over the next five years in relationship managers and investment advisers.
Hunter added: “The particular jewel in the crown at the half-year stage was the Wealth Solutions business, which saw income growth of 25 per cent, with net new sales more than doubling to $13bn (£10.3m).
“In addition, Wealth assets under management grew by 12 per cent to $135bn (£107bn), underlying the importance and profitability of a bank which has diverse income lines and where its affluent sector boosts overall performance.”
The bank’s 2024 guidance expects a net interest income of approximately $10bn (£8bn) and operating income to increase between five and seven per cent.