Standard Chartered PLC (LSE:STAN) delivered better-than-expected second-quarter results, with adjusted earnings per share exceeding analyst forecasts by 17%, supported by strong growth in its Wealth Solutions division and disciplined cost management.
For the first half of 2026, the bank reported adjusted earnings per share of 151.6 cents, representing a 17% increase from the same period last year. Second-quarter operating income rose 3% year over year to $5.7 billion, or 8% excluding the $238 million gain generated by the Solv India transaction in the prior-year period. Overall revenue also exceeded market expectations, coming in approximately 3% ahead of consensus estimates.
Wealth Solutions continued to be a major growth engine, with second-quarter revenue climbing 43% year over year. Revenue from investment products increased an impressive 56%, while Global Banking posted an 18% rise in revenue, benefiting from strong origination activity and healthy capital markets performance. Operating expenses remained tightly controlled, broadly unchanged from a year earlier and around 2% below analyst forecasts at approximately $3.15 billion for the quarter.
“We delivered a record first-half performance in 2026, with double-digit growth in Wealth Solutions and Global Banking,” said Bill Winters, Group Chief Executive. “We delivered a 17% increase in our earnings per share, and our upgraded income guidance and new share buyback of $1 billion reflect our confidence in the business.”
Net interest income increased 7% year over year to $2.9 billion during the second quarter, while non-interest income rose 9%, excluding the impact of the Solv India transaction, to $2.8 billion. Net interest margin improved to 203 basis points, up five basis points from the previous year. Credit impairment charges totaled $150 million, below analyst expectations, and included $44 million of management overlays related to the conflict in the Middle East.
Following the strong first-half performance, Standard Chartered raised its guidance for 2026 operating income growth, now expecting results to be around the midpoint of its previous 5% to 7% constant currency growth range, excluding notable items. The bank also expects net interest income to deliver low single-digit percentage growth for the full year while maintaining its expense guidance of approximately $13.3 billion at constant currency, excluding notable items.
The group’s Common Equity Tier 1 (CET1) ratio strengthened to 14.2%, an increase of 77 basis points from the previous quarter and around 50 basis points above consensus forecasts. The improvement reflected lower risk-weighted assets totaling $261.5 billion. Standard Chartered also announced a new $1 billion share buyback programme, which is expected to reduce the CET1 ratio by approximately 38 basis points, and increased its interim ordinary dividend by 66% to 20.4 cents per share.
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