Standard Chartered beats forecasts thanks to wealth management boost

Standard Chartered exceeded profit expectations in the first quarter of 2025 thanks to a strong performance by its wealth division.

The Asia-focused lender revealed its pre-tax profits grew by 12 per cent at constant currency rates to $2.1billion (£1.5billion) in the three months ending March, compared to average analyst forecasts of $1.9billion.

Operating income rose by 5 per cent on an underlying basis to $5.4billion, helped by short-term hedging boosting net interest income.

Banks commonly use structural hedging to protect profits from volatile interest rate movements.

Growth was further driven by StanChart’s wealth management unit, whose income soared by 28 per cent to $777million following high demand for investment products and bancassurance.

StanChart announced plans last October to invest $1.5billion in its wealth arm over the coming five years as part of a strategy focused on attracting wealthy individuals and global institutions.

Result: Standard Chartered exceeded profit expectations in the first quarter of 2025

Yet the FTSE 100 company warned on Friday that recent tariff measures had led to ‘heightened uncertainty’.

Since President Donald Trump returned to office in mid-January, he has upended the global trading system with sweeping taxes on US imports.

These have included a 10 per cent baseline tariff on most imported goods, 25 per cent levies on foreign steel and aluminium products, and a whopping 145 per cent tariff on Chinese-made goods.

China has retaliated with 125 per cent tariffs on American products, while Canada has responded with countermeasures worth £32billion on some goods.

Bill Winters, chief executive of StanChart, said tariffs had ‘increased global economic and geopolitical complexity, and we remain watchful of the external environment.

‘But our ability to help clients manage their business and wealth across borders in times of volatility reinforces our confidence that we can continue to improve returns.’

Winters, 63, saw his compensation levels jump by 46 per cent to a record £10.7million last year, of which £7.6million was bonuses and share awards.

Although his annual basic pay has been cut by 40 per cent, the American-born boss, who joined StanChart a decade ago, could earn up to £13.1million this year if the firm hits certain performance targets.

Standard Chartered shares were 0.3 per cent down at 1,089p on late Friday morning, but have still grown by approximately 44 per cent over the past year.

Fellow banking group NatWest has declared its operating pre-tax profits jumped by more than a third to £1.8billion in the first quarter.

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