Standard Chartered reports record Q1 profit on strength in wealth and investment banking

Standard Chartered (LSE:STAN) reported record first-quarter earnings on Thursday, driven by strong performance in its wealth management and investment banking businesses, even as it increased provisions to account for geopolitical risks.

The Standard Chartered posted operating income of $5.9 billion for the three months to March, representing a 9% increase year over year on a constant currency basis.

Profit growth led by wealth and fee-based businesses

Profit before tax rose 17% to $2.45 billion, while net profit attributable to shareholders increased 19% to $1.9 billion.

Growth was primarily driven by the Wealth Solutions division, where income surged 32% amid strong demand for investment products and bancassurance offerings. Global Banking income also increased 19%, supported by higher deal activity and strength in capital markets.

Net interest income edged up 1% to $2.9 billion, while non-interest income climbed 16%, reflecting the bank’s continued shift toward fee-generating business lines.

Higher provisions reflect geopolitical uncertainty

Credit impairment charges rose to $296 million, an increase of $79 million compared to the same period last year. The bank attributed the rise mainly to precautionary provisions linked to tensions in the Middle East.

CEO Bill Winters said the group’s “advantaged market presence” and disciplined approach to risk management helped underpin performance despite global uncertainty.

Capital strength and outlook remain stable

Return on tangible equity improved to 17.4%, up from 14.8% a year earlier, while the CET1 capital ratio stood at 13.4%.

Looking ahead, Standard Chartered left its 2026 guidance unchanged, expecting operating income growth at the lower end of its 5% to 7% target range on a constant currency basis. Net interest income is projected to remain broadly stable.

The bank also expects to keep costs largely flat, including the final phase of its “Fit for Growth” programme, while maintaining a target return on tangible equity above 12%.

More about Standard Chartered

Standard Chartered is a global banking group with a strong presence across Asia, Africa, and the Middle East. The bank provides a wide range of financial services, including corporate and investment banking, wealth management, and retail banking, with a focus on emerging markets and international trade flows.