Standard Chartered beats profit estimates, unveils USD1 billion buyback

Standard Chartered reported 2Q pretax profit of USD2.33 billion, beating the USD2.08 billion consensus, and announced a USD1 billion buyback that sent shares up 4.8%.

"We delivered a record first-half performance in 2026, with double-digit growth in Wealth Solutions and Global Banking," Chief Executive Bill Winters said. "Our upgraded income guidance and new share buyback of USD1 billion reflect our confidence in the business."

Second-quarter operating income rose 3.2% to USD5.7 billion, topping the USD5.55 billion consensus. Excluding a USD238 million gain from the Solv India transaction a year earlier, income climbed 8%. For the first half, pretax profit increased 9.1% to USD4.78 billion on operating income of USD11.6 billion, up 6.4% from a year earlier.

Profit attributable to shareholders rose 10% to USD3.65 billion, with earnings per share of 151.6 US cents. The interim dividend jumped 66% to 20.4 US cents per share. The bank upgraded its full-year outlook, now expecting operating income growth around the middle of its 5% to 7% range at constant currency, compared with its prior forecast for the lower end.

The USD1 billion buyback reflects a strong capital position after a 17% increase in earnings per share. Standard Chartered shares closed at HKD233.6 in Hong Kong, erasing an earlier decline of nearly 2% before the midday results release. The results contrast with HSBC Holdings, which last week reported a smaller-than-expected rise in second-quarter profit as its wealth management revenue slowed. Investors will watch the third-quarter trading update for signs of sustained momentum in Wealth Solutions and Global Banking, the two divisions that drove the first-half outperformance.

This article is for informational purposes only and does not constitute investment advice.