Standard Chartered reported a full-year increase in pretax profit alongside a major $1.5 billion share buyback and elevated dividend as it disclosed annual results that fell short of some market expectations. The Asia-focused UK banking group signalled confidence in its strategic direction even as analysts and investors grappled with earnings that missed forecasts and leadership changes that roiled its stock.
Annual pretax profit for 2025 rose to $6.96 billion, representing growth on the prior year and underpinned by strong performances in global banking and wealth management. However, the final quarter’s pre-tax profit of $814 million was materially below the roughly $1.1 billion anticipated by analysts, highlighting pressure on certain income streams amid a challenging credit and rate environment. Net interest income, a key profit driver, declined more sharply than expected in the quarter, further tempering investor sentiment. The lender nonetheless announced a 65 per cent increase in its full-year dividend, underlining its intention to deliver returns to shareholders even as profitability metrics lagged.
The bank’s decision to launch a fresh $1.5 billion buyback programme came in the wake of the abrupt departure of its chief financial officer, Diego De Giorgi, whose exit triggered a significant drop in the group’s London-listed shares. De Giorgi, widely regarded as a central architect of the bank’s “Fit for Growth” cost-efficiency drive, moved to private capital firm Apollo, leaving questions over succession and strategic continuity. The departure, which led to one of the most pronounced single-day share price falls for Standard Chartered in some time, has put the spotlight on executive planning at the bank.
Chief executive Bill Winters, the longest serving leader among major UK banks since his appointment in 2015, sought to reassure markets that he intends to remain at the helm through the rollout of the next strategic phase. Winters is scheduled to present the updated plan at the bank’s capital markets event in May, though he has not set a clear timeline for his eventual succession. Amid investor concern, the board has expressed a preference for continuity through the forthcoming period of financial and operational repositioning.
Standard Chartered’s results underscored divergent fortunes across its business lines. Wealth management income surged about 24 per cent for the year, fuelled by inflows of new client assets and growth in affluent customer segments, particularly from Greater China. In contrast, global markets reported declines in operating income, reflecting caution among institutional clients and subdued trading conditions. The global banking division also delivered moderate growth, supported by trade finance and corporate lending in Asia, the Middle East and Africa — regions that remain key to the group’s cross-border strategy.
Investors reacted with mixed signals. Standard Chartered’s Hong Kong-listed shares gained in response to the buyback and dividend boost, while its London-listed stock was more subdued, reflecting broader market volatility and lingering questions around leadership stability and earnings quality. Market analysts noted that the stronger cash returns could support the share price, but pointed out that underlying profit momentum and cost control would be critical for sustaining investor confidence.
The $1.5 billion buyback aligns with a broader trend of capital return programmes among global banks looking to bolster valuation amid interest rate headwinds and slower loan growth. Standard Chartered’s payout follows elevated bonus pools and compensation shifts — including a reported 10 per cent increase in the bank’s bonus pool to $1.9 billion — which have attracted both internal and external scrutiny in the context of cost discipline and shareholder returns.
Analysts say Standard Chartered’s strategic priorities will hinge on navigating slower growth in net interest income and adjusting its operational focus to high-growth areas such as wealth and corporate banking. The bank’s revised profitability target — aiming for a return on tangible equity above 12 per cent by 2026 — reflects upward revisions to expectations and confidence in the potential of its emerging market footprint. Close monitoring of cost efficiency, asset quality and the execution of digital and cross-border initiatives will be key to achieving those ambitions.
Annual pretax profit for 2025 rose to $6.96 billion, representing growth on the prior year and underpinned by strong performances in global banking and wealth management. However, the final quarter’s pre-tax profit of $814 million was materially below the roughly $1.1 billion anticipated by analysts, highlighting pressure on certain income streams amid a challenging credit and rate environment. Net interest income, a key profit driver, declined more sharply than expected in the quarter, further tempering investor sentiment. The lender nonetheless announced a 65 per cent increase in its full-year dividend, underlining its intention to deliver returns to shareholders even as profitability metrics lagged.
The bank’s decision to launch a fresh $1.5 billion buyback programme came in the wake of the abrupt departure of its chief financial officer, Diego De Giorgi, whose exit triggered a significant drop in the group’s London-listed shares. De Giorgi, widely regarded as a central architect of the bank’s “Fit for Growth” cost-efficiency drive, moved to private capital firm Apollo, leaving questions over succession and strategic continuity. The departure, which led to one of the most pronounced single-day share price falls for Standard Chartered in some time, has put the spotlight on executive planning at the bank.
Chief executive Bill Winters, the longest serving leader among major UK banks since his appointment in 2015, sought to reassure markets that he intends to remain at the helm through the rollout of the next strategic phase. Winters is scheduled to present the updated plan at the bank’s capital markets event in May, though he has not set a clear timeline for his eventual succession. Amid investor concern, the board has expressed a preference for continuity through the forthcoming period of financial and operational repositioning.
Standard Chartered’s results underscored divergent fortunes across its business lines. Wealth management income surged about 24 per cent for the year, fuelled by inflows of new client assets and growth in affluent customer segments, particularly from Greater China. In contrast, global markets reported declines in operating income, reflecting caution among institutional clients and subdued trading conditions. The global banking division also delivered moderate growth, supported by trade finance and corporate lending in Asia, the Middle East and Africa — regions that remain key to the group’s cross-border strategy.
Investors reacted with mixed signals. Standard Chartered’s Hong Kong-listed shares gained in response to the buyback and dividend boost, while its London-listed stock was more subdued, reflecting broader market volatility and lingering questions around leadership stability and earnings quality. Market analysts noted that the stronger cash returns could support the share price, but pointed out that underlying profit momentum and cost control would be critical for sustaining investor confidence.
The $1.5 billion buyback aligns with a broader trend of capital return programmes among global banks looking to bolster valuation amid interest rate headwinds and slower loan growth. Standard Chartered’s payout follows elevated bonus pools and compensation shifts — including a reported 10 per cent increase in the bank’s bonus pool to $1.9 billion — which have attracted both internal and external scrutiny in the context of cost discipline and shareholder returns.
Analysts say Standard Chartered’s strategic priorities will hinge on navigating slower growth in net interest income and adjusting its operational focus to high-growth areas such as wealth and corporate banking. The bank’s revised profitability target — aiming for a return on tangible equity above 12 per cent by 2026 — reflects upward revisions to expectations and confidence in the potential of its emerging market footprint. Close monitoring of cost efficiency, asset quality and the execution of digital and cross-border initiatives will be key to achieving those ambitions.
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Banking