Standard Chartered announced a new $1.5 billion share buyback following an 18% increase in annual profit. This growth stemmed from exceptional performance in its wealth business and markets division.
The bank, focused on Asia, Africa, and the Middle East, reaffirmed its commitment to wealth management and markets despite global economic uncertainties and varying interest rate policies affecting Western banks.
CEO Bill Winters highlighted the bank's advantage in its core markets, predicting outpaced global growth. The bank's pretax profit for 2024 reached $6 billion, slightly below analysts' expectations. StanChart shares in Hong Kong recovered to a 0.45% loss after the news, supported by positive sentiments in the market.
StanChart plans to invest $1.5 billion over five years in key areas to boost income growth and returns. Winters expressed confidence in the bank's strategic focus and aims to surpass market performance in asset gathering and income growth.
The bank aims to achieve $200 billion in net new money by 2029, with a focus on wealth solutions income growth. In 2024 alone, StanChart attracted 265,000 new affluent clients, generating $44 billion in new funds, a significant increase from the previous year.
Additionally, StanChart declared a final dividend of 28 cents per share. The $1.5 billion share buyback exceeded some expectations and signaled a robust financial strategy for the year ahead.
Following a similar trend, HSBC reported a 6.6% rise in annual pretax profit, emphasizing growth in wealth and personal banking. Both institutions are navigating declining interest income by expanding fee-based services like wealth management.
Both StanChart and HSBC are strategically withdrawing from less profitable sectors, focusing on areas where they hold competitive advantages amid challenging regulatory and competitive landscapes.