Standard Chartered PLC (STAN.L) Q1 2026 Earnings Call Transcript
Bullish Other 453.65B United Kingdom
Next Earnings
2026-04-30
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Standard Chartered delivered a strong 2025 with record income, a robust ROE, a new buyback and higher dividend, surpassing its 3-year targets a year early and moving to a 2026 guidance focused on flat NII and ROTE above 12%.
⭐ Key Highlights
Record annual income and ROE
2025 income reached $20.9 billion, up 8% YoY, with underlying ROE of 14.7%, driven by double-digit growth in Global Markets and Global Banking and 24% Wealth growth.
New share buyback and higher dividend
Announced a $1.5 billion share buyback and a 65% year-on-year increase in full-year dividend per share, signaling strong capital deployment.
2025 targets exceeded ahead of schedule
Company achieved its 3-year targets for income growth, ROTE, and shareholder distributions a year early, prompting new 2026 guidance and a shift to reported results.
Shift to reported results and 2026 guidance
Plan to present results on a reported basis from 2026 and provide 2026 targets, including ROTE >12% and broadly flat NII at constant currency, with flat costs.
Strong wealth and affluent momentum
Wealth Solutions grew 24% in 2025 to $447B in affluent AUM, with $52B net new money and 275k new-to-bank affluent clients in 2025.
✔Positive Signals
- Record 2025 income of $20.9B and 14.7% underlying ROTE
- New $1.5B share buyback and 65% higher dividend
- Exceeding 2024–2026 targets one year early and initiating new 2026 guidance
- Strong Wealth Solutions growth and 275k new-to-bank clients in Q4
- Shift to reported basis improves transparency and comparability
✖Negative Signals
- Q4 2025 episodic income weaker and more volatile than hoped
- NII expected to be broadly flat in 2026 with headwinds from rate normalization and WRB actions
- CTA/SFA adjustments: FFG savings lower than initial expectations ( ~$1.3B vs $1.5B) and costs higher in 2026 guidance
- Continued reliance on RM-driven model with capacity and cost controls; ongoing cost-to-income normalization required
- Uncertainties around deposit beta and NII sensitivity to rate moves
📊Financial Results
- Full-year 2025 income $20.9B, up 6% underlying (8% excluding notable items)
- Profit before tax (PBT) up 18% to $7.9B (reported PBT $7.0B); statutory ROE 11.9%
- NII full-year 2025: $11.2B, up 1%; 2026 NII expected to be broadly flat YoY
- Non-NII up 13% YoY (17% excluding notable items); 2025 ROE 14.7% including ~70bp FVOCI gains from Ventures
- Credit impairment 2025: $676M; loan loss rate ~19 bps; normalization toward 30–35 bps long-term
🔮Future Guidance
- 2026 guidance: income growth at bottom end of 5%–7% range; NII broadly flat; costs broadly flat at constant currency
- Statutory ROE_target >12% in 2026; new 2026 medium-term targets to be detailed at May investor event
- Return to a single reporting basis from 2026; no more underlying disclosures; 2026 cost trajectory ~flat on constant currency (~$13.3B)
- Capital allocation to emphasize continued buybacks and dividends while investing in growth initiatives (wealth/AI/data, etc.)
💡Interesting Insights
- Committee-level pivot to a single reported framework suggests a broader shift in investor communications and potentially higher comparability across periods
Detailed Analysis
AI-generated summary of Standard Chartered PLC earnings call transcript.
The 2025 results show broad-based strength across core engines, with record annual income of $20.9B (up 8% YoY) and an underlying ROE of 14.7%. Wealth grew 24% driven by record net new money, Global Markets and Global Banking posted double-digit gains, and the wealth franchise reached $447B in affluent AUM. The group announced a $1.5B buyback and a 65% uplift in the dividend, signaling confidence in continued shareholder value creation. The firm exceeded its 3-year plan a year early, and is transitioning to reported financials from 2026, with guidance for 2026 calling for income growth at the bottom end of 5–7%, broadly flat NII, roughly flat costs at constant currency, and statutory ROE over 12%. The year also included strategic progress in exits (e.g., client and RWAs optimization), investments in technology, data, and AI, and a continued focus on a high-quality, diversified franchise across CIB and WRB. The outlook remains favorable as structural trade and capital flow trends favor the bank’s cross-border and affluent capabilities, with May investor events to lay out medium-term targets and strategy.
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