The Standard Charted Bank reports a third quarter profit noted to be driven by the surging revenue in its wealth management and global banking divisions.
The London-based bank posted a pre-tax profit of Ksh228.33 billion ($1.77 billion), marking a 3 % increase from the same period last year, surpassing the average collective estimate made by financial analyst which was estimated at Ksh196.08 billion ( $1.52 billion).
Moreover , capital markets and advisory fee income rose 33 % in the third quarter, as global clients resumed deal making amid easing policy uncertainty.
The Chief Financial Officer for standard chartered Diego De Giorgi said that the corporate has confidence in bouncing back particularly following diplomatic engagements such as the meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
“Anything that reduces policy uncertainty around the world is to be welcomed,” De Giorgi noted during the earnings call. “It improves business confidence and investors’ confidence in general.
The bank now expects to achieve its 13% return on tangible equity target in 2025, a year earlier than previously forecast. It also upgraded its full-year income growth outlook to the top end of its 5% to 7 % guidance range, citing a strong performance in wealth management.
The income from the wealth division spiked a 27 %, which goes in hand with the rising demand for financial advice and increased account openings amid market volatility.
Standard Chartered aims to attract Ksh25.8 trillion ( $200 billion) in the new assets and therefore deliver a double-digit income growth from wealth services over the next five years.
In top of that the shares of Standard Chartered rose to 1.3% in London trading, outperforming the FTSE 100, which slipped to 0.3 % . However the stock is rated at 53 % year-to-date, outpacing rival HSBC, which has gained 37 % but recently reported a sharp drop in profit due to Ksh180.6 billion ( $1.4 billion ) in legal charges.
Analysts expect StanChart to revise its medium-term targets when it announces full-year results in February. Jefferies analyst Joe Dickerson described the third-quarter results as a clear signal of momentum across the bank’s core businesses.
This performance marks a significant milestone in the bank’s strategic pivot towards generating fee for businesses across Asia and Africa.
