Standard Chartered's Wealth Management Boosts Profitability in Hong Kong

Standard Chartered's Impressive Financial Performance

Standard Chartered, one of Hong Kong’s three note-issuing banks, reported a 19% growth in earnings for 2024, reaching US$4.28 billion or US$1.41 per share. This significant increase was primarily driven by robust growth in its wealth management division, which reported a remarkable 29% expansion and contributed record income of US$19.7 billion. The bank's performance topped the US$4.23 billion consensus forecast by analysts tracked by Bloomberg.

Strategic Buyback and Dividends

In a strategic move, Standard Chartered proposed a final dividend of 28 US cents, raising the total for 2024 to 37 US cents. Additionally, the bank aims to repurchase US$1.5 billion of its own shares, showing confidence in its growth trajectory. CEO Bill Winters highlighted the bank's focused strategy to enhance cross-border capabilities and wealth management expertise for affluent clients.

Market Dynamics

Despite positive results, Standard Chartered’s shares fell 2% to HK$108.90 ahead of the earnings announcement, while the Hang Seng Index witnessed a 2.9% surge. The bank's statutory pre-tax profit increased by 18% to US$6 billion, although it fell short of the US$6.2 billion predictions. This indicates a continuous strong momentum in global markets and banking initiatives.