Standard Chartered makes strong start to year as new chair takes reins

(Sharecast News) - Standard Chartered reported a strong start to 2025 on Thursday, as it reaffirmed its strategic direction and announced leadership changes at its annual general meeting in London. The FTSE 100 Asia-focussed bank also confirmed the appointment of Maria Ramos as its new chair, succeeding José Viñals, who stepped down after a nine-year tenure.

In 2024, the bank posted record income of $19.7bn, a 12% increase on a constant currency basis, with a return on tangible equity (RoTE) of 11.7%, its highest in a decade.

That performance was driven by robust growth across wealth solutions, global banking, and global markets.

Investment product income rose 36% in the wealth segment, while global markets and global banking delivered double-digit growth, underlining the bank's success in combining cross-border capabilities with wealth management.

Profitability continued into the first quarter of 2025, with operating income up 7% year-on-year to $5.4bn, and profit before tax rising 12% to $2.3bn.

Earnings per share increased by 19%, supported by strength in both the corporate and investment bank (CIB) and the wealth and retail banking (WRB) divisions.

Alongside strong financials, Standard Chartered continued to reward shareholders, announcing a 37% increase in the full-year dividend to 37 cents per share and executing a $1.5bn share buyback.

Total shareholder distributions since its 2023 full-year results had now reached $4.9bn, moving toward its $8bn target by 2026.

The group highlighted progress in sustainable finance, with related income reaching $982m in 2024, close to its 2025 goal of $1bn.

Since 2021, the bank said it had mobilised $121bn in sustainable finance, part of a $300bn commitment by 2030.

It also published its inaugural transition plan, and said it remained on track to achieve net zero in scope one and two emissions by 2025.

Strategically, the bank said it was continuing to refine its focus, prioritising cross-border banking and affluent wealth management in high-growth markets.

In CIB, income from financial institutions rose to 51% of the segment's total, with a medium-term target of 60%.

Network income, currently 61% of CIB revenue, was also set to increase, reflecting the bank's position as a facilitator of global trade and investment.

Despite global economic uncertainties, including tensions around tariffs and supply chain shifts, Standard Chartered said it saw opportunity in the rewiring of trade routes and structural changes in wealth creation.

Chief executive officer Bill Winters said the bank was well-positioned for long-term growth, noting that its more focused, capital-efficient model was capable of generating higher returns.

The AGM also marked a leadership transition.

José Viñals, who the board said helped steer the group through significant transformation, formally stepped down, with Maria Ramos assuming the role of chair.

Ramos, a board member since 2021, now also chaired the governance and nomination committee.

In related changes, Phil Rivett was appointed senior independent director and interim chair of the board risk committee, pending regulatory approval, while Jackie Hunt was set to lead the audit committee.

Winters concluded by reaffirming confidence in the bank's outlook.

"This is our time," he said, adding that the group remained focused on improving returns and delivering sustained value to shareholders.

At 1416 BST, shares in Standard Chartered were up 1.29% at 1,059.5p.

Reporting by Josh White for Sharecast.com.