Standard Chartered upgraded a key performance metric and announced a fresh $1 billion share repurchase on Thursday after achieving a 28% gain in annual pretax profit as global interest rate rises boosted its lending revenue.
StanChart’s growth, like that of its worldwide rivals, was assisted by aggressive central bank interest rate rises aimed at combatting inflation, which allowed lenders to charge higher interest rates after a decade of near-zero rates. It said that its latest share repurchase will begin soon.
The London-based bank raised its performance estimate, predicting a return on tangible equity — a crucial profitability indicator — of 10% this year and 11% in 2024. It had earlier set a goal of 10% by 2024.
The bank concentrating on Asia, Africa, and the Middle East declared a statutory pretax profit of $4.3 billion for 2022. That was less than the $4.73 billion average of expert expectations provided by the bank, but it was more than the $3.35 billion it earned in 2021.
StanChart posted profits amidst a resurgence of takeover rumors after First Abu Dhabi Bank PJSC denied media allegations that it was considering an offer for StanChart.
StanChart’s stock has risen as a result of the buyout rumors.
The performance of StanChart’s business lines was varied, emphasizing the work that Chief Executive Bill Winters, the longest-serving CEO of a major European bank, needs to accomplish to get the lender firing on all cylinders.
StanChart’s financial markets trading unit reported a 21% increase in revenue as increasing inflation and Russia’s invasion of Ukraine created turbulent markets, fueling frantic activity by institutional clients throughout 2022.