StanChart profit beats forecasts on fee income boost

By Jerry  Published On May 2, 2024
LONDON/HONG KONG, May 2 (Reuters) – Standard Chartered PLC (STAN.L), opens new tab beat forecasts on Thursday with a 5.5% rise in first-quarter pretax profit, as a surge in income from its trading and wealth businesses more than compensated for additional credit losses.
The bank, which makes the bulk of its revenue and profits in Asia, saw profit at its investment banking unit climb 13% in the quarter.
Crucially, the bank grew fee-based revenues as it raked in more wealthy clients and saw robust trading activity across its markets product set, a key target for it and rivals such as HSBC (HSBA.L), opens new tab.
Peaking central bank interest rates worldwide have capped the recent gains banks have made from lending-based income, putting pressure on them to increase non-interest revenue from such fee-based businesses.
StanChart’s shares, a focus for CEO Bill Winters, jumped more than 6% in London by 0720 GMT, matching earlier gains in Hong Kong.
“After some years in the doldrums having been the darling of the UK banking sector, Standard finds itself in something of a revival,” said Richard Hunter, Head of Markets at interactive investor.
Source: REUTER

Leave A Reply

Your email address will not be published. Required fields are marked *

*