Standard Chartered PLC

Standard Chartered reported Q2 2026 operating income of $5.7 billion, up 3% year on year, or up 8% excluding the Solv gain in last year’s period. Profit before tax was $2.3 billion, ROTE was 17.9%, and net tangible asset value per share was $7.55, up 4% year on year. WRB income rose 18% to $2.5 billion; Wealth Solutions income increased 43% to $1.1 billion; CIB income was $3.3 billion, up 2%; and Global Markets flow income grew 16%. Credit impairment was $150 million, including $44 million of additional Middle East overlays, and the loan loss rate was 20 basis points in the quarter. Management raised 2026 income guidance to around the middle of the 5% to 7% growth range, expects NII to rise by a low single-digit percentage, and now expects 2026 expenses excluding notable items to be around $13.3 billion at constant currency. The group maintained its 2026 ROTE guidance of greater than 12%.

William Winters said the bank is moving from “durable returns into compounding growth,” arguing that its super connector model and exposure to structural trends such as cross-border complexity, digitization, and rising wealth participation are creating durable upside. He stressed that the strategy is working, with strong momentum in wealth, CIB, and capital-light businesses, and reaffirmed longer-term milestones of above 15% RoTE in 2028 and around 18% in 2030. His tone was confident but cautious, repeatedly noting an uncertain external environment and the need to remain watchful.

Manus Costello highlighted broad-based financial strength, including $5.7 billion of operating income, $2.3 billion of profit before tax, 17.9% ROTE, and $7.55 net tangible asset value per share. He said expenses were broadly flat, Fit for Growth cost-to-achieve spend was $128 million in the quarter and around $250 million year to date, and 2026 expenses are expected to be around $13.3 billion. He also noted that the CET1 ratio was 14.2%, RWAs fell $4.7 billion quarter on quarter but are expected to largely reverse in the second half, and the bank is returning capital through a $1 billion buyback and a $0.204 interim dividend.

Analysts focused on China compliance changes, offshore trust tax scrutiny, the RWA decline and reversal, capital return mix, wealth growth mix, and whether current wealth margins are sustainable. Management said the China and trust-related rule changes do not imply a material business impact because the bank is already compliance-oriented and has only a small amount of AUM in trusts. On credit, management said the Stage 2 increase was driven by precautionary overlays rather than a broad deterioration in risk, and on capital they described the interim dividend as mechanical while the buyback size reflects their judgment of valuation and CET1.