Standard Chartered Reports First-Quarter Profits Beating Expectations on Strong Wealth Management Growth

Standard Chartered has announced its first-quarter 2025 financial results, surpassing expectations thanks to robust growth in Wealth Management and Global Markets divisions. This positive outcome highlights the bank's steady momentum despite ongoing global economic uncertainties.

According to the report, pre-tax profit for the first quarter reached $2.103 billion, up from $1.91 billion in the same period last year and exceeding the forecast of $1.905 billion gathered from analysts. Underlying net interest income (NII) stood at $2.796 billion, in line with expectations.

Bill Winters, Group Chief Executive, stated: “We delivered a strong performance in the first quarter of 2025, with earnings per share up 19%, driven by double-digit income growth in Wealth Solutions, Global Markets, and Global Banking.”

1. Impact of Trade Tensions

Despite the strong results, Standard Chartered noted that this report does not fully capture the impact of tariffs imposed by U.S. President Donald Trump. Tariffs on steel, aluminum, and autos have been in effect since March, while the reciprocal tariffs announced in April are currently on hold. Winters commented that these trade measures have added complexity to the global economic and geopolitical landscape but expressed confidence in the bank’s ability to continue improving its performance.

2. Growth Strategy and Cost-Saving Initiatives

Standard Chartered is currently executing its "Fit for Growth" initiative, launched in 2024, aiming to save around $1.5 billion over three years. This forms part of a broader long-term strategy to optimize operational costs and enhance shareholder returns.

Earlier, in February, the bank reported an 18% rise in full-year 2024 profits, driven by record growth in its wealth management division and solid performance in markets. Following these results, the bank announced a $1.5 billion share buyback plan to increase shareholder value.

Notably, just days before Standard Chartered’s announcement, rival HSBC—also heavily focused on the Asian market—revealed a share buyback plan worth up to $3 billion, expected to be completed ahead of its 2025 interim results.

3. Overview of Standard Chartered

Standard Chartered is a leading multinational bank headquartered in London, UK, with a strong presence across Asia, Africa, and the Middle East. Established in 1969 through the merger of Standard Bank and Chartered Bank, it operates in over 60 countries and territories, serving millions of retail, corporate, and institutional clients.

The bank is renowned for its diverse financial services, including retail banking, corporate banking, and wealth management. Beyond its financial role, Standard Chartered is actively involved in sustainable development initiatives and community support projects, such as its “Seeing is Believing” campaign aiding the visually impaired and its financial inclusion programs.

With a solid financial foundation, a focus on high-growth markets, and a commitment to innovation, Standard Chartered is expected to maintain its growth trajectory and deliver long-term value to shareholders and clients alike.

Conclusion

The first-quarter 2025 results demonstrate that Standard Chartered is on a solid growth path despite challenges from the international trade environment. Success across key business areas, coupled with effective cost-saving strategies, will be critical drivers for the bank’s long-term objectives.

Source: CNBC 

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