Standard Chartered Q3 Net Profit Jumps 46%, Raises 2026 RoTE Target to 14%
Standard Chartered reported a strong Q3 beat driven by wealth management, raising its full-year Return on Tangible Equity guidance from 12% to approximately 14%.
Standard Chartered reported a 46% year-on-year increase in third-quarter net profit to US$1.5 billion, beating analyst forecasts of US$1.2 billion. The bank's shares closed 7.6% higher at HK$219.80 on Wednesday following the release.
The performance was primarily driven by robust growth in the wealth management unit and a significant reduction in credit impairment charges. Fee and other non-interest income rose 19% to US$2.82 billion, while Hong Kong, the bank's largest single market, saw underlying pre-tax profit surge 91% to US$944 million. Bad debt charges fell 52% year-on-year to US$90 million.
CFO Manus Costello noted the addition of 76,000 new-to-bank affluent clients during the quarter. CEO Bill Winters announced an upgrade to the 2026 outlook, stating that operating income growth is now expected to exceed the previous 5-7% range. Consequently, the bank has raised its Return on Tangible Equity (RoTE) target from 12% to approximately 14% for 2026, reflecting confidence in capturing structural shifts in global trade and wealth creation.