Standard Chartered has raised its full-year operating income outlook after third-quarter pre-tax profit increased 29% at constant currency to $2.3bn, supported by growth in wealth management and financial markets alongside lower credit impairment charges.
The London-headquartered banking group reported operating income of approximately $5.8bn for the three months to September. Excluding notable items, income increased 14% at constant currency, with stronger performance across several business lines.
Wealth Solutions recorded 26% income growth, supported by increased demand for investment products and bancassurance services. Investment Products income rose 28%, while bancassurance increased 18%, contributing to another record quarter for the business.
The growth reflects Standard Chartered’s expanding wealth management activity across its international markets, where it distributes investment and insurance products alongside conventional banking services. Its relationships with affluent customers provide opportunities to generate fee income that is less directly dependent on movements in lending rates.
Global Markets income increased 21%, reflecting stronger activity in both recurring client transactions and larger, episodic deals. The division serves corporate and institutional customers using financial market products to manage funding, foreign exchange and other commercial exposures.
Adjusted net interest income increased 9% to $3bn, supported by higher volumes and changes in the bank’s balance-sheet composition. Adjusted non-interest income rose 19% to $2.8bn, reflecting the contribution of wealth management and financial markets activity.
These adjusted income measures reflect the bank’s published management presentation and differ from certain statutory income classifications. They provide a breakdown of the businesses contributing to the group’s overall operating income.
Operating expenses increased 9% to approximately $3.4bn, excluding notable items, as Standard Chartered continued investing in growth. Income increased more quickly than expenditure, improving the relationship between the bank’s operating costs and revenues.
Credit impairment charges declined to $90m from $188m a year earlier. Corporate and Investment Banking recorded a net release of $24m, while Wealth and Retail Banking incurred a charge of $114m.
Lower impairment costs supported the increase in profitability. The bank reported return on tangible equity of 15.7%, compared with 10.5% in the equivalent quarter last year, while its cost-to-income ratio improved to 59%.
The group’s capital position remained within its target range. Its common equity tier one capital ratio was 13.8% at the end of September, down 31 basis points from June. Risk-weighted assets stood at $263.3bn, an increase of $1.8bn over the quarter.
Standard Chartered also reported a 4.1% increase in underlying loans and advances to customers compared with June, while underlying customer deposits were broadly unchanged. These movements contributed to its income performance without a comparable expansion in the overall risk-weighted balance sheet.
Group chief executive Bill Winters attributed the results to growth across the business and demand associated with changes in international trade, investment and wealth creation. The group’s geographical presence remains concentrated in Asia, Africa and the Middle East, despite its London headquarters and UK stock market listing.
Following the results, Standard Chartered expects full-year operating income growth to exceed its previous 5%–7% range, measured at constant currency and excluding notable items. It continues to forecast a cost-to-income ratio of approximately 60% and return on tangible equity of around 14% for 2026.
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