StanChart Posts Profit Beat, Announces $1.0 Billion Buyback — Update

By Kosaku Narioka

Standard Chartered reported second-quarter net profit that topped expectations, bolstered by a strong performance in wealth banking that offset credit charges tied to the Iran conflict, and announced a new share buyback of $1.0 billion.

The London-based bank said Wednesday that profit from its wealth and retail banking business rose sharply, driven by increased income from investment products.

StanChart upgraded income guidance for 2026 and committed to an imminent share buyback of up to $1.0 billion, following a $1.5 billion repurchase completed in the first half of the year.

The bank disclosed $234 million in credit charges related to the Middle East conflict for the first half, an increase from the $190 million in precautionary charges taken in the quarter ended March.

The lender has significant operations in the United Arab Emirates and many Asian countries reliant on energy from the region. It generates much of its profit in Asia.

"Geopolitical uncertainty and economic fragmentation are creating complexity, but they are also creating new and diversified opportunities," Chief Executive Bill Winters said. "These trends play to our strengths."

Under Winters, StanChart has focused on handling cross-border transactions and banking affluent customers in Asia and the Middle East.

In May, Winters unveiled new financial targets to investors, including a plan to cut support staff by more than 15% by 2030.

That same month, the bank appointed Manus Costello as group chief financial officer, following the abrupt February departure of Diego De Giorgi, who had been considered a front-runner to succeed the bank's longtime chief executive.

On Wednesday, the bank projected operating income growth this year to land around the middle of the 5%-7% range in constant currency terms, excluding material notable items. It had previously expected that growth to be around the bottom end of the range.

The London-based bank reported net profit of $1.71 billion for the three months ended June, steady from the previous year. That beat the $1.48 billion estimate from a poll of analysts by data provider Visible Alpha.

The bank booked credit impairments of $150 million in the second quarter, up from $119 million in the year-earlier period.

Profit from its wealth and retail banking business rose 76% to $1.01 billion, while the corporate and investment banking business saw profit fall 7.4% to $1.51 billion, weighed by higher operating expenses and credit impairment.

Standard Chartered's shares were recently 4.9% higher in Hong Kong following the second-quarter results, pushing year-to-date gains to about 24%.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

July 29, 2026 03:06 ET (07:06 GMT)