StanChart Achieves Strong Financial Performance in Q1 2023, with 18% Jump in Income

Standard Chartered on Wednesday has released its financial results for the first quarter of 2023, unveiling that the bank delivered another strong set of results during the period.

The quarterly operating income came in at $4.4bn, increasing 8% on a yearly basis and 13% at constant currency (ccy). specifically, net interest income was up 18% at ccy. Net interest margin (NIM) rose 5bps QoQ to 1.63%, with the benefit from rising interest rates partly offset by increased hedge losses and adverse liability and asset mix.

Profit for the period reached $1.3 bn, 14% higher over the last same period. Operating expenses increased 5% YoY to $2.7 bn, or up 10% at ccy. Underlying profit before tax grew 25% at ccy to $1.7 bn, with statutory profit before tax up 25% at ccy to $1.8 bn.

The Group's balance sheet remains strong, liquid and well diversified. Risk-weighted assets (RWA) stood at $251 bn, up 3% or $6.2 bn since 31.12.22. CET1 ratio reached 13.7%, which was towards the top of the 13-14% target range. Earnings per share increased 19% to 37.6 cents, with return on tangible equity of 11.9%, up 170bps YoY.

"Business performance continues to improve across our markets and products and has been achieved in what continues to be an uncertain environment. We remain highly liquid and strongly capitalised with a CET1 ratio towards the top of our target range. We remain optimistic about our continued strong performance and now expect 2023 income to grow around 10 per cent, the top end of our range, and remain confident in the delivery of all of our financial targets," said Bill Winters, Group Chief Executive.

In February, Fazzaco reported that Standard Chartered registered income up 10% to $16.3bn for full year of 2022​, or up 15% excluding the debit valuation adjustment (DVA) and at ccy.