Standard Chartered Delivers Strong Results in Q1 2022

Standard Chartered has released its financial results for the first quarter, ending 31 March, 2022. The Group delivered a strong performance in the first quarter of 2022 in volatile and challenging market conditions.

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StanChart posted a forecast-beating 6% rise in first-quarter profit, sending its shares sharply higher, as the emerging-markets focused lender benefited from rising interest rates aimed at controlling inflation.

The London-headquartered lender, which is focused on Asia, Africa and the Middle East, now expects income growth this year to slightly exceed earlier guidance of 5-7%, underlining how banks' prospects are being lifted by policy rate hikes even as the global economic outlook dims.

StanChart's Hong Kong-listed shares jumped more than 12% at one point to their highest level since early March following the earnings report, compared with a 0.6% rise in the broader market. Its London-listed stocks were trading 10% higher at 0722 GMT, as investors relished a 27% rise in revenues in the bank's financial markets business.

Statutory pretax profit for the bank increased to $1.49 billion in January-March, from $1.4 billion a year earlier. This compared with the $1 billion average estimate of 16 analysts as compiled by the bank.

The pandemic continued to weigh on the bank's China business in particular, as closures of its branches amid ongoing virus restrictions drove an 18% decline in the bank's wealth management income compared with the same period a year ago.

The bank's trading business reported income up 32%, with its macro trading unit reporting a record quarter as the bank benefited from volatility in energy prices.

Source: Retuers