Standard Chartered reported quarterly results that fell short of analyst expectations, with some parts of the business offsetting weaknesses elsewhere.
For the three months ended Dec. 31, the Asia-focused lender recorded underlying pretax profit of $1.24 billion, below the $1.38 billion consensus compiled by Bloomberg, though up 18% from $1.05 billion a year earlier.
Revenue and income dynamics
Operating income was broadly flat at $4.85 billion compared with $4.83 billion in the prior-year period. The bank said growth in its wealth solutions and global banking franchises helped offset weaker episodic trading income in markets.
Net interest income declined about 1% year-on-year to approximately $2.95 billion from $2.98 billion, reflecting margin pressure from lower rates.
Costs and credit
Operating expenses rose 5% to $3.43 billion from $3.28 billion a year earlier, driven by continued investment and transformation spending. Credit impairment charges increased to $145 million from $130 million a year earlier, with the rise mainly attributed to retail provisions.
Chief Executive Bill Winters said the bank continued to benefit from structural growth trends across its Asia, Africa, and Middle East footprint and had made a solid start to 2026.
Full-year performance and shareholder returns
On a full-year basis, underlying pretax profit rose 18% to $7.9 billion from $6.8 billion in the prior year, with return on tangible equity improving to 14.7% from 11.7%.
The lender proposed a final dividend of 49 cents per share, taking the full-year payout to 61 cents, an increase of 65% from the prior year. Management also announced a new $1.5 billion share buyback.
The quarterly figures show a mix of operational strength in client-facing businesses and headwinds from market-related trading income and elevated expense growth.
Key takeaways
- Quarterly underlying pretax profit of $1.24 billion missed the $1.38 billion Bloomberg consensus; year-on-year profit rose 18%.
- Operating income was flat at $4.85 billion as wealth and global banking growth offset weaker episodic trading income.
- Net interest income eased about 1%; operating expenses increased 5%, and credit impairment charges rose modestly.
Sectors affected
- Banking and financial services - results and capital returns influence investor sentiment and sector valuations.
- Markets and trading - episodic trading income volatility impacts market-facing earnings.
- Wealth and corporate banking - steady growth supported overall operating income.