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Highlights
- The leading international banking and financial services firm said that its first-quarter profit had witnessed an increase of 21%, beating the overall expectations.
- For the first three months ending 31 March, the London-based bank reported its pre-tax profit of US$1.8 billion (£1.44 billion).
- The London-based bank is forecasting a 10% growth in income with a measure of profitability of 11.9%.
As the season of quarterly results starts within the banking sector, there is a buzz in the air. Many had eagerly waited for the first results to kick off in what is presumed to be a mixed bag. Standard Chartered PLC (LON: STAN) started things nicely for the UK banking sector as it announced its quarterly results on a high on Wednesday.
A day after the quarterly results announcement, Standard Chartered on 27 April was down by -0.28% at the market opening and trading at GBX 633.20. The FTSE 100 constituent has given its shareholders a healthy 30.72% return over the past year and 1.70% on a YTD basis. With a P/E ratio of 9.13, STAN boasted a market cap of £17,935.11 million as of Thursday.
The leading international banking and financial services firm said that its first-quarter profit had witnessed an increase of 21%, beating the overall expectations as the rising interest rates, China reopening, and lockdowns boosted the lender.
For the first three months ending 31 March, the London-based bank reported its pre-tax profit of US$1.8 billion (£1.44 billion). This was 21% up from the US$1.49 billion (£1.19 billion). Meanwhile, the revenue, too, witnessed an 8% bump to US$4.4 billion, which was largely on the back of higher net interest income.
It was the financial firm’s highest first-quarter profit in nine years despite being one of the biggest income earners. Standard Chartered’s earnings report indicated how various Central Banks have managed to do well in a higher interest period.
Meanwhile, the London-based bank is forecasting a 10% growth in income with a measure of profitability of 11.9%. The global bank’s performance in Asia was one of the most profitable, registering pre-tax profits of 63%, while Europe and the Americas suffered an US$18 million loss.
Of late, banks have been under the microscope following the rescue of Credit Suisse by UBS and Silicon Valley Bank. The Credit Suisse fiasco had raised fears of another economic meltdown, with several British banks witnessing the steepest falls in more than a year.
However, the Bank of England remained firm that while the comprehensive actions were necessary, the UK banking system is on a safe footing and is well capitalised and funded.
