Standard Chartered has reported a stronger-than-expected third-quarter profit, driven by robust growth in cross-border trade loans and wealth management, which helped offset pressures from Hong Kong’s property market downturn.
Standard Chartered announced that its net profit rose 10% to $1.03 billion in the three months to September, equivalent to 44.5 US cents per share. The result exceeded analysts’ forecasts of $984 million, underscoring the bank’s resilience in a challenging operating environment. Pre-tax profit increased by 3% to $1.77 billion, also ahead of consensus estimates.
Chief executive Bill Winters highlighted the bank’s progress towards its strategic targets, noting that Standard Chartered now expects to achieve an underlying return on tangible equity of around 13% in 2025, a year earlier than previously planned. He attributed this to the bank’s sharper focus on cross-border banking and wealth management, which delivered strong double-digit growth.
Standard Chartered bets big on wealth management
Wealth management continued to be the bank’s strongest performer, with fee and non-interest income rising 7% to $3.7 billion. Standard Chartered has been expanding its wealth centres in Hong Kong and mainland China to capture affluent clients, a strategy that Winters confirmed would remain central to the bank’s growth.
On a nine-month basis, pre-tax profit reached $6.15 billion, representing a 20% increase compared with the previous year. Hong Kong, the bank’s largest single market, contributed $542 million in underlying pre-tax profit in the third quarter, accounting for 27% of group earnings, though this was down 4.7% year-on-year.
Chief financial officer Diego De Giorgi emphasised the bank’s ambition to make Hong Kong a cornerstone of its wealth management strategy, forecasting that the city could become the world’s largest wealth hub, with Singapore following closely behind.
Standard Chartered’s performance demonstrates the effectiveness of its pivot towards wealth management and cross-border banking, which are helping to insulate it from regional property market weakness. While rising provisions highlight ongoing risks in Hong Kong and mainland China’s real estate sectors, the bank’s strong capital flows, diversified income streams, and early achievement of profitability targets suggest a solid foundation for sustained growth.
Winters confirmed that the bank will invest $1.5 billion in its wealth management business over the next five years, with Hong Kong at the centre of this expansion strategy. This commitment underscores Standard Chartered’s confidence in the city’s role as a global financial hub, even amid property sector turbulence.
