StanChart Expects to Reach RoTE Target a Year Earlier
Emerging markets-focused bank Standard Chartered recorded higher profits in the third quarter and expects to deliver on its return on tangible equity target one year ahead of time.
Standard Chartered’s pre-tax profit in the third quarter of 2025 rose 10 percent year-on-year to nearly $2 billion, according to the bank’s financial results.
Operating income increased 5 percent to $5.1 billion with net interest income down 1 percent to $2.7 billion, while non-interest income grew 12 percent to $2.4 billion. The latter was largely driven by a record quarter from wealth solutions alongside global banking, which saw income rise 27 percent and 23 percent, respectively. Operating expenses were up 4 percent to $3 billion due to targeted investments for business growth, partly offset by efficiency-related savings.
Year-to-date, the bank's pre-tax profit increased 16 percent to around $6.7 billion.
Upgraded Guidance
As a result of the latest earnings, the bank has upgraded its guidance with operating income expected to achieve a compound annual growth rate of 5-7 percent in 2023-2026, with 2025 expected to be in the upper end of the range, excluding notable items, compared to the previous guidance for the lower end.
The bank also anticipates that return on tangible equity (RoTE) will be approximately 13 percent in 2025, reaching its target a year earlier than planned.
«Progress is broad-based, but our sharper strategic focus on servicing our clients’ cross-border and affluent banking needs is paying off, with strong double-digit growth in Wealth Solutions and Global Banking, alongside good momentum in our Global Markets flow business,» commented Standard Chartered group CEO Bill Winters.
