UK-based Standard Chartered PLC (GB:STAN) announced a record share buyback of $1.5 billion, driven by its strong Q2 results for 2024. The bank reported a pre-tax profit of $1.6 billion for the second quarter, exceeding analysts’ expectations of $1.5 billion. The profit also marked an increase of 5% year-over-year at constant currency (ccy). Following the results, STAN stock gained 6% as of writing.
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Standard Chartered, or StanChart, is a multinational banking group, operating in 53 markets globally.
StanChart Q2 Review: Major Highlights
In the second quarter, Standard Chartered’s operating income grew by 4% year-over-year to $4.7 billion at constant currency. Among its segments, operating income from its Wealth Solutions increased by 27% at ccy, driven by higher affluent clients.
On the other hand, the bank’s net interest income dropped by 18% (at ccy) to $1.6 billion, as the advantage from higher interest rates diminished.
In terms of outlook, StanChart upgraded its income growth forecast and now expects a more than 7% increase in operating income in 2024. The bank had previously projected operating income growth at the upper end of the 5%-7% range, excluding one-time items. Further, it upheld its net interest income forecast for 2024, expecting it to be between $10 billion and $10.25 billion at constant currency.
Additionally, StanChart aims to return $5 billion to its shareholders by 2026.
Is Standard Chartered a Buy, Hold, or Sell?
Post-results, analysts from Goldman Sachs and Morgan Stanley confirmed their Buy ratings on STAN stock. Analysts are upbeat after the bank’s Q2 results, given its strong capital position, and a positive outlook.
On TipRanks, STAN stock has a Moderate Buy rating, backed by six Buy and four Hold recommendations. The Standard Chartered share price forecast is 976.45p, which is 26.6% higher than the current trading level.
