Standard Chartered (STAN) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating income was $4.8 billion, up 7% year-over-year at constant currency, with strong momentum in Wealth Solutions and Global Banking; H1 2024 income up 13% year-over-year at constant currency, ROTE at 14.0% up 2 points year-over-year.

• Upgraded 2024 income growth guidance to above 7% and announced a $1.5 billion share buyback, bringing total shareholder distributions since FY 2023 to $2.7 billion.

• Maintained robust capital and liquidity positions, with CET1 ratio at 14.6% and liquidity coverage ratio at 148%.

• Fit for Growth program progressing, targeting $1.5 billion in cost savings by 2026.

Financial highlights

• Underlying profit before tax up 21% at constant currency to $4.0 billion; reported profit before tax up 5% to $3.5 billion.

• Net interest income was $2.6 billion in Q2, up 6% year-over-year; non-NII grew 9%, driven by Wealth Solutions.

• Cost-to-income ratio improved to 57% from 61.5% year-over-year; positive income-to-cost jaws of 8%.

• Interim dividend per share of $0.09, up 50% year-over-year; share count down 17% since 2021.

• Credit impairment provisions were $73 million, with net releases in CIB; loan-loss rate at 12bps.

Outlook and guidance

• 2024 operating income expected to grow above 7% at constant currency, excluding notable items.

• Net interest income for 2024 guided at $10–$10.25 billion; positive income-to-cost jaws expected.

• ROTE targeted at 12% in 2026, with steady progress expected.

• Underlying effective tax rate for 2024 expected to be around 30%.

• Plan to return at least $5 billion capital to shareholders over 2024–2026.