Goldman Sachs raised its price target on Standard Chartered to HKD276 from HKD267 after the bank's second-quarter profit beat estimates by 17%. The broker cited strong non-interest income, lower provisions and better-than-expected net interest income. Management also lifted its full-year operating income and net interest income guidance.
Goldman Sachs raised Standard Chartered's price target to HKD276 from HKD267, reiterating a Buy rating after second-quarter profit beat estimates by 17%.
"The results were driven by strong non-interest income, lower provisions and slightly better-than-expected net interest income," Goldman Sachs said in a note. The bank's effective tax rate also came in more favorable than forecast.
Standard Chartered reported a pretax profit of $4.78 billion for the first half, up 9% from a year earlier and above the $4.52 billion consensus. The second quarter alone contributed $2.3 billion, beating Goldman's estimate by 11%. Wealth Solutions income surged 38%, while Global Banking revenue climbed 19%, offsetting a 1-basis-point dip in net interest margin to 2.04%.
Management raised its full-year guidance, lifting operating income growth expectations from the bottom of the 5%-7% range to the midpoint and revising net interest income guidance from broadly flat to low single-digit growth. Goldman raised its 2026 earnings per share forecast by 4% on the stronger wealth management revenue momentum, while leaving 2027-2028 estimates broadly unchanged.
The bank also announced a $1 billion share buyback and a 66% increase in its interim dividend to 20.4 cents per share, boosting total shareholder returns for the period. Shares of Standard Chartered rose 3.9% in Hong Kong trading on Wednesday.
The guidance upgrade suggests management expects wealth-driven revenue momentum to persist through the second half. Investors will watch for further analyst revisions as the bank's return on tangible equity target of above 12% comes into sharper focus.
This article is for informational purposes only and does not constitute investment advice.
