StanChart soars after strong Q1 beat

Standard Chartered reported a strong Q1, exceeding analyst expectations

Standard Chartered (LSE: STAN) shares surged over 6% on Thursday after the bank reported a strong first quarter, exceeding analyst expectations on both revenue and profit.

Operating income for the first three months of 2024 reached $5.13 billion, a 13% increase year-on-year. Net interest margin also impressed, rising to 1.76%, surpassing analyst estimates of 1.74%. Pretax profit climbed to $1.91 billion, up from $1.81 billion last year and beating market expectations of $1.39 billion.

Despite a rise in credit impairment charges, particularly within its Wealth & Retail Banking division, the bank expressed confidence in its full-year 2024 outlook. This guidance, laid out in February, forecasts operating income growth of 5% to 7% between 2024 and 2026, with 2024 expected to be near the upper end of that range. Additionally, StanChart anticipates net interest income to fall between $10 billion and $10.25 billion at constant currency for 2024.

Looking ahead, the bank aims to return at least $5 billion to shareholders over the next three years while steadily increasing its return on tangible equity (RoTE) from 10% towards a 12% target by 2026.

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