Standard Chartered (STAN) Q4 2025 earnings summary

Executive summary

• Achieved record annual income of $20.9 billion in 2025, up 8% year-on-year, with broad-based growth across Global Markets, Global Banking, and Wealth Solutions.

• Underlying Return on Tangible Equity (RoTE) reached 14.7% in FY'25, exceeding the 2026 target a year early.

• Completed the 3-year strategic plan in just 2 years, surpassing group targets for income, RoTE, and shareholder distributions; new 2026 targets set.

• Over $9.1 billion in shareholder distributions since February 2024, including a new $1.5 billion share buyback and a 65% increase in full-year dividend per share.

• Underlying profit before tax up 18% year-on-year at constant currency.

Financial highlights

• Profit before tax rose 18% to $7.9 billion; reported profit before tax was $7 billion.

• Earnings per share increased 37% year-on-year to 229.7 cents.

• Full-year Net Interest Income (NII) was $11.2 billion, up 1%, with non-NII up 13% (17% excluding notable items).

• Operating expenses increased 4%, with a 4% positive income-to-cost jaws and an 80 bps improvement in the cost-income ratio to 59%.

• Credit impairment was $676 million, with a loan loss rate of 19 bps, broadly flat year-on-year and below through-the-cycle guidance.

• CET1 ratio ended at 14.1%; pro forma CET1 after buyback is 13.5%.

• Underlying customer deposits grew 12% year-on-year.

Outlook and guidance

• 2026 income growth expected at the bottom end of the 5–7% historical range at constant currency.

• NII expected to be broadly flat in 2026, with continued headwinds from interest rates and WRB portfolio actions.

• Statutory RoTE targeted at greater than 12% in 2026.

• Costs for 2026 expected to be broadly flat at constant currency, with no further underlying cost disclosures.

• Medium-term financial framework to be communicated in May.

• Credit loss rate expected to normalize toward 30–35 bps over time.