(AOF) – Standard Chartered (+8.19% to 655.20 pence) posts the largest increase in the FTSE 100 index after announcing the increase in the remuneration of its shareholders. The British bank with a strong presence in Asia announced a 50% increase in its annual dividend to 27 cents per share and a new $1 billion share buyback program. “We will continue to actively manage the group’s capital position, with a goal of returning at least $5 billion over the next three years,” said chief executive Bill Winters.
Presentation of the 2026 objectives
In the fourth quarter, taxable profit – which serves as a benchmark for British companies – increased from $123 million to $1.14 billion in one year. It came to $1.056 billion, exceeding the consensus compiled by Standard Chartered by 10%. UBS points out that the cost of risk of $62 million represents only 25% of that anticipated by analysts.
Adjusted operating income increased 7% to $4.024 billion, including $1.63 billion in interest income, up 8%.
Standard Chartered has unveiled objectives for 2026. It expects growth in its operating income of 5% to 7% between 2024 and 2026. Interest income is expected between $10 and $10.25 billion this year at a rate constant exchange rates. The bank expects to save around $1.5 billion at a cost of less than $1.5 billion between 2024 and 2026.
HSBC’s competitor plans a gradual increase in return on tangible equity, from 10% currently to 12% by 2026 and will continue to increase thereafter.
“The new targets suggest pre-tax profit in 2026 19% higher than consensus,” calculates UBS.
The British banking establishment ended the year with a core capital ratio (CET1) at 14.1%, up 20 basis points over the quarter. It exceeded its objective by a ratio of between 13% and 14%. The latter was maintained.
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