Standard Chartered shares hit their highest level in around a decade on Friday after the lender lined-up a $1.5billion buyback and cheered record annual income. The Asia-focused bank's pre-tax profits climbed by 18 per cent to $6billion in 2024, despite plummeting by 30 per cent to $800million in the fourth quarter.
Its underlying operating income increased by 13 per cent to $19.7billion as net interest income was boosted by the roll-off of short-term hedges, which banks often employ to protect their revenues against varying interest rates. Income was also lifted by surging demand for investment products, driving a record performance in the group's wealth management business, as well as double-digit percentage growth in its global markets and global banking arms.
Following the result, the FTSE 100 firm declared a $1.5billion share buyback plus a 28 cents per share final dividend. This takes the company's total investor payouts since the previous full-year results to $4.9billion, over half the way to its goal of returning at least $8billion to shareholders between 2024 and 2026.
StanCart's London-listed shares rose 2.1 per cent by midmorning to 1,188p, marking their highest level since June 2014 after almost doubling in the last 12 months. Payout: Standard Chartered's Connecticut-born boss, Bill Winters (pictured), could take home up to £13.1million in compensation this year.
Bill Winters, chief executive of StanChart, said: 'Our strategy of combining differentiated cross-border capabilities for corporate and institutional clients with leading wealth management expertise for affluent clients is firing on all cylinders.'. StanChart's underlying operating expenses only rose by 6 per cent to $11.8billion over 2024, while credit impairment charges tipped 5 per cent higher to $557million.
The bank expects its income to expand by an average of 5 to 7 per cent on a constant currency basis over the coming two years, further noting it was currently tracking towards the top end of the range. Winters will see his basic salary cut by 40 per cent to $1.5million, although he could be awarded larger bonuses if his company hits specific targets.
'After some years in the doldrums, having once been the darling of the UK banking sector, Standard finds itself in something of a revival,' said Richard Hunter, head of markets at Interactive Investor. He added: 'The warm reception to the numbers reflects optimism for the significant opportunities which the Asian region could provide over the medium to longer term.'.
Having earned over £10.6million in compensation in 2024, the Connecticut-born boss could take home up to £13.1million this year. StanChart's performance rounds off a reasonably healthy reporting season for the UK banking sector, with Barclays, NatWest and HSBC all reporting higher profits.
However, Lloyds Banking Group's earnings slumped by over 20 per cent to under £6billion after it set aside £700million in potential redress payments related to the motor finance scandal. Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
