Net profit rose 5 per cent to US$1.4 billion in the first three months of 2024, or US$0.46 per share, from US$1.3 billion in the same period last year, beating a US$937 million consensus estimate compiled by Bloomberg.
Pre-tax underlying profit rose 25 per cent to US$2.13 billion in the quarter, compared with US$1.71 billion a year earlier, topping the market estimate of US$1.39 billion.
“Business performance was strong and broad-based across our segments, products and markets in what continues to be an uncertain environment,” CEO Bill Winters said in an earnings statement to the Hong Kong stock exchange on Thursday.
“We remain confident in the delivery of our financial targets and are maintaining our full year 2024 guidance.”
The 2024 guidance included an operating income increase of around 5 to 7 per cent, excluding notable items, and net interest income of between US$10 billion and US$10.25 billion.
The bank’s wealth solution business income rose 21 per cent in the first quarter to US$616 million, from US$511 million in the previous quarter, with the bank onboarding 62,000 new affluent clients.
Markets income was up 13 per cent quarter on quarter to US$1 billion, with broad-based growth across all products driven primarily by episodic income from market volatility in select geographies, while commodities benefitted from higher metals and energy prices.
The group is working through a US$1 billion share buy-back programme it announced on February 23. As of March 31, it had spent US$437 million purchasing 52 million ordinary shares, reducing the outstanding shares by around 2 per cent.
HSBC boss Noel Quinn steps down as bank’s first-quarter profit beats estimates
HSBC boss Noel Quinn steps down as bank’s first-quarter profit beats estimates
Standard Chartered also saw a credit impairment of US$165 million in the quarter, compared with US$20 million a year earlier. The bank’s wealth and retail banking division accounted for the bulk of the impairment.
Net interest income fell by 22 per cent to US$1.6 billion, compared with US$2 billion a year earlier.
The bank’s net interest margin, a measure of profitability, rose 6 basis points quarter on quarter to 1.8 per cent. Operating income, the equivalent of revenue in US accounting terms, rose by 17 per cent to US$5.2 billion.
Another key unit, wealth and retail business, saw an 8 per cent profit gain quarter on quarter to US$724 million. Corporate and investment banking profit grew by 10 per cent quarter on quarter to US$1.6 billion.
Standard Chartered jumped 6.4 per cent to HK$72.25 at 2.30pm local time on Thursday.