Standard Chartered Witnesses 10% YoY Rise in Income for Full Year 2022

Standard Chartered PLC has released its financial metrics for the fourth quarter and full year of 2022, showing that the bank delivered increases in income.  

Selected information concerning FY’22 financial performance

Return on tangible equity of 8.0%, up 120bps year-on-year

Income up 10% to $16.3bn, up 15% excluding the debit valuation adjustment (DVA) and at constant currency (ccy)

• Net interest income up 18% at ccy, representing around half of total income growth

• Wealth Management down 17% at ccy, from risk-averse customer sentiment and the impact of COVID-19 restrictions

• Net interest margin (NIM) up 20bps YoY to 1.41%, rising interest rates partially offset by hedges and product mix change

Expenses increased 4% YoY to $10.6bn, or up 9% at ccy

Underlying profit before tax of $4.8bn, up 15% at ccy

The Group’s balance sheet remains strong, liquid and well diversified

• Customer loans and advances up $12bn or 4% since 31.12.21

• Liquidity coverage ratio 147% (31.12.21:143%)

Risk-weighted assets (RWA) of $245bn, down 10% or $27bn since 31.12.21

The Group remains strongly capitalised – CET 1ratio 14.0% (31.12.21: 14.1%)

• Proposed final dividend of $405m or 14c per share will result in a full-year dividend of $523m or 18c, up 50%

• ​$1bn share buy-back starting imminently is expected to reduce the CET1 ratio by approximately 40bps

Selected information concerning 4Q’22 financial performance

Income up 12% to $3.7bn, up 26% excluding DVA and at ccy

• Net interest income up 28% at ccy

• Wealth Management down 19% at ccy

• NIM up 15bps QoQ to 1.58%, partially offset by hedges and product mix change and deposit pass through

Expenses increased 4% YoY to $2.7bn, or up 14% at ccy

Credit impairment charge of $344m, up $141m QoQ

Underlying profit before tax of $0.5bn, up 17% at ccy