Standard Chartered announces $1.5 billion buyback following profit surge

In February 2025, Standard Chartered, focused on Asia, Africa, and the Middle East, announced a significant $1.5 billion share buyback after revealing an 18% rise in annual profits for 2024. This growth was buoyed by record increases in its wealth management sector and strong performance from its markets division. The bank's shares reached heights not seen in nearly a decade, reflecting strong investor confidence amid an uncertain global economic environment. CEO Bill Winters emphasized the bank's strategic positioning to harness growth in its footprint markets that are expected to outpace global averages. The Hong Kong-listed shares of Standard Chartered rose 4.4%, closing at HK$116 ($14.93) apiece, while London shares noted a similar uptick. The rise in share prices outpaced the overall market benchmarks. Additionally, Standard Chartered reported a pretax profit for 2024 of $6 billion, a notable improvement from the previous year’s $5.1 billion, albeit slightly trailing analysts’ expectations. The bank further highlighted its intent to reinvest this capital efficiently to enhance its wealth and digital platforms alongside client engagement. Standard Chartered's current strategy entails a financial commitment of $1.5 billion over the next five years directed towards amplifying wealth solutions income. This initiative aims for a target of $200 billion in net new money through optimal asset gathering from both existing and new clients from 2025 to 2029. The organization has also been successful in attracting a considerable influx of affluent clients in 2024, acquiring 265,000 new wealthy individuals contributing an impressive $44 billion in new money, marking a 61% increase from the previous year. The bank also declared a final dividend of 28 cents per share. The context surrounding this financial performance resonates with broader trends affecting international banks. Overall banking institutions, including their major rival HSBC, are facing challenges due to variable interest rates and potential implications from geopolitical tensions, particularly related to tariffs. Nonetheless, Standard Chartered has experienced limited impacts on its institutional businesses and does not heavily rely on specific trade corridors. The bank is pivoting towards fee-based income streams, particularly in wealth management, to balance declining interest income from global monetary policies favoring lower rate environments.