Standard Chartered PLC has reported a net profit of US$931 million for the third quarter of 2024, exceeding analysts' estimates of US$886 million. The bank's pre-tax profit reached US$1.7 billion, surpassing the forecast of US$1.5 billion, while operating income rose 11% to US$4.9 billion. Notably, the wealth solutions segment saw a significant increase, with operating income up 32% to US$694 million [61cd77ff].
In light of these strong earnings, Standard Chartered announced plans to invest US$1.5 billion over the next five years in its wealth management business, effectively doubling its previous investment plans. CEO Bill Winters emphasized a strategic focus on affluent clients and indicated potential sales of underperforming units within the next 18 to 24 months [61cd77ff].
Additionally, the bank has increased its shareholder distribution target from US$5 billion to at least US$8 billion for the period from 2024 to 2026. This decision reflects the bank's commitment to returning value to its shareholders following a robust financial performance [61cd77ff].
Standard Chartered's net interest income also rose by 9% to US$2.6 billion, although credit impairment charges increased by 39% to US$178 million. Following the earnings report, the bank's shares rose 3.1% to HK$90.85, indicating positive market sentiment [61cd77ff].
In a related context, Standard Chartered continues to offer competitive deposit rates, including short-term rates as high as 10% to attract mainland Chinese customers. This initiative is part of a broader strategy to enhance liquidity and attract deposits amid tightened liquidity rules imposed by the Hong Kong Monetary Authority [fb1e7cab]. The bank is specifically targeting customers in the Wealth Management Connect program, allowing them to exchange yuan for U.S. dollars at preferential rates [fb1e7cab].
The combination of strong earnings and strategic investments in wealth management positions Standard Chartered favorably in the competitive banking landscape, particularly as it seeks to leverage the growing wealth of its affluent clientele in Asia [61cd77ff].