Standard Chartered (LSE:STAN) has reported a 29% jump in third-quarter pre-tax profit to $2.3bn on Wednesday, prompting the London-listed bank to raise its 2026 guidance and signal it now expects return on tangible equity of around 14% for the year.
The emerging-markets-focused lender said operating income rose 14% to $5.8bn in the three months to 30 September, excluding notable items, compared with the same quarter last year. Earnings per share rose 55% to 68.9 cents for the quarter, taking the year-to-date increase to 27%.
Wealth Solutions delivered its third consecutive record quarter, with income up 26%, driven by broad-based growth in investment products and bancassurance; affluent net new money hit a record $20bn in the period.
Global Markets income rose 21%, with double-digit growth in both flow and episodic income, while net interest income climbed 9% to $3bn on higher volumes and an improved balance sheet mix.
Operating expenses rose 9% to $3.4bn, reflecting frontline hiring, affluent investment and higher technology spend, though the bank maintained positive income-to-cost jaws of 5 percentage points.
The credit impairment charge halved to $90m from $188m a year earlier, made up of a $24m net release in Corporate & Investment Banking and a $114m charge in Wealth & Retail Banking that was broadly flat; the charge included a $34m net hit from management overlays linked to the Middle East conflict.
"We delivered another strong quarter, with broad-based growth across our businesses and year-to-date earnings per share up 27%," said chief executive Bill Winters, adding that the performance "gives us confidence to raise our 2026 income guidance."
The bank's Common Equity Tier 1 ratio stood at 13.8%, down 31 basis points quarter-on-quarter, which it described as towards the top end of its guided range after profit accretion helped fund the $1bn share buyback launched in July.
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Tangible net asset value per share rose 2% to $17.26, while underlying loans and advances to customers increased 4.1% and underlying customer deposits were broadly flat quarter-on-quarter.
Standard Chartered now guides for full-year operating income growth above its previous 5-7% range at constant currency and excluding notable items, with net interest income expected to rise around 4% year-on-year; it also guides to a cost-to-income ratio of around 60% excluding notable items and RoTE of around 14%.
This marks a further upgrade from the quarter-on-quarter guidance given at the half-year results in July, when the bank had pointed to income growth around the middle of the 5-7% range and RoTE above 12%, and from guidance reiterated at the first-quarter results in April that had anchored to the bottom end of that range.