In contrast to HSBC (LON:HSBA) earlier this week, Asia- and Africa-focused lender Standard Chartered (LON:STAN) beat Q3 forecasts and rasied its FY guidance. Shares in the bank gained almost 8% in Hong Kong, although the response in London was a more muted 3% gain.
Q3 profit beats forecasts
For the three months to September, Standard Chartered posted a 46% increase in net profit to $1.5 billion, comfortably above the $1.23 billion consensus. Growth was driven by higher interest and non-interest income, strong wealth management results and a solid performance in investment banking.
Net interest income rose 9% to $3 billion driven by higher loan volumes and an improved balance sheet mix. Non-interest income rose faster, up 19% to $2.8 billion, driven by strong momentum in Wealth Solutions and Global Markets.
Wealth Solutions income climbed 26% thanks to broad-based growth in insurance and investment products. Global Markets income rose 21% thanks to positive trading across equities and fixed income securities.
Key figures from Q3 results (all $ billions)
| Q3 2026 | Q3 2025 | Change | |
| Net interest income | 2,966 | 2,737 | +9% |
| Non-interest income | 2,815 | 2,373 | +19% |
| Operating profit | 5,781 | 5,110 | +13% |
| Net profit | 1,504 | 1,028 | +46% |
Source: Company accounts
Increased FY guidance
For the full year, Standard Chartered now expects operating income to rise by more than its original estimate of 5% to 7%. Originally, it was forecasting growth around the middle of the target range.
The bank also said it expects to deliver a return on tangible equity of around 14%, up from its previos forecast of 12% or more. For Q3, return on tangible equity was a remarkable 15.7%, up 5.2% on the previous year.
‘We have long believed that the structural shifts in trade, investment and wealth creation would create significant opportunities for Standard Chartered’, commented CEO Bill Winters. ‘The consistency and breadth of our performance reflects the strength of our franchise and disciplined execution, (which) gives us confidence to raise our 2026 income guidance’, added WInters.
Considering its exposure not just to Asia and Africa but also the Middle East, these are reassuring results from Standard Chartered. Some of its customers are in countries which have seen disruption to their economies, or are reliant on energy and other products from the region.
Since taking over as CEO in 2015, Bill Winters has transformed Standard Chartered from a bit-part player into a powerhouse in regional trade. In the last decade, the shares are up more than 400% whereas HSBC shares are up around half that amount.
The bank is part-way through a $1 billion share buyback, which started at the end of July. On completion, it will reduce the share count by around 1%, which will give another small lift to earnings per share.
