Standard Chartered hits profitability target early, upgrades income guidance

Standard Chartered said on Thursday it expects to hit a key profitability target a year ahead of schedule and upgraded its income guidance for 2025, citing strong growth in its wealth management and global banking divisions.

The Asia, Africa, and Middle East-focused bank posted an underlying pretax profit of $2 billion for the third quarter, a 10% increase from the same period a year earlier.

Operating income rose 5% to $5.1 billion, as a 12% jump in non-interest income, driven by a record quarter in its Wealth Solutions business, offset a 1% dip in net interest income.

The company now expects its return on tangible equity to be around 13% for 2025 and for full-year income growth to be at the upper end of its 5% to 7% range.

"We now expect to deliver an underlying return on tangible equity of around 13% in 2025, hitting our target a year earlier than planned," Chief Executive Bill Winters said.

"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."

The bank set aside $195 million for potential bad loans during the quarter, an increase from $178 million a year ago.

Standard Chartered said its core capital ratio, a key measure of financial strength, stood at 14.2% at the end of September.