Standard Chartered Quarterly Profit Falls on Weak Net Interest Income

By Sherry Qin

Standard Chartered's fourth-quarter net profit declined, missing expectations for growth, weighed by weak net interest income and higher operating expenses.

StanChart's net profit fell 5.7% to $465 million in the fourth quarter, below the $661.3 million analysts polled by Visible Alpha expected. The London-based bank, which generates much of its profit in Asia, said Tuesday that its underlying profit before tax increased 18% to $1.235 billion.

The bank's net interest income--the difference between what it earns on loans and pays on deposits--continued to decline, falling 12% after a 5% drop in the third quarter amid lower interest rates and margin compression.

However, like its Asian peers, the bank has experienced growing demand for its wealth products amid geopolitical uncertainties and market volatility. The lender's wealth solutions business recorded 20% growth in the final quarter of 2025, taking its noninterest income to $3.42 billion.

StanChart exceeded its aim of 13% return on tangible equity, a key profitability target, in 2025, hitting the goal a year earlier than initially planned.

The bank said it will commence a new $1.5 billion share buyback imminently.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

February 23, 2026 23:57 ET (04:57 GMT)