Standard Chartered reports strong first-quarter profit growth driven by wealth management

Standard Chartered, a major bank headquartered in London, recently reported its financial results for the first quarter of 2025, showing a significant profit increase. The bank's profit before taxation reached $2.103 billion, compared to $1.91 billion in the previous year, indicating a strong performance driven by growth in various sectors, including wealth management, global markets, and global banking. Wealth Solutions, in particular, stood out with a remarkable 28% year-on-year increase in operating income. Additionally, Standard Chartered's Global Markets division achieved a 14% rise in operating income, supported by robust growth in credit trading, while the Global Banking department reported a 17% increase. This positive performance is framed within a challenging economic context, including rising interest rates that have led to a $219 million credit impairment charge, primarily affecting the Wealth and Retail Banking division. Despite these challenges, the Group Chief Executive, Bill Winters, expressed confidence in the bank's ability to continue improving returns, highlighting the significance of their presence in high-growth markets across Asia, Africa, and the Middle East. The bank has also set a forecast for operating income growth at a compound annual rate of 5-7% for the years 2025 and 2026, excluding the effects of deposit insurance reclassification. Earlier this year, Standard Chartered reported that their annual profits surged by 18% in 2024 due to record growth in wealth management and strong results in their markets division, reinforcing their optimistic future outlook. As part of their strategic initiatives, the bank is engaged in a cost-saving program called "Fit for Growth," which aims to achieve $1.5 billion in savings over a three-year period. The financial performance and strategic outlook presented in these earnings results have led to a positive response from investors, evidenced by a 2.57% rise in the bank's shares listed in Hong Kong following the earnings report release. This indicates a favorable market reaction to Standard Chartered's reported resilience amid funding challenges and increased global economic complexity due to trade tariffs that have been in place since March.