Standard Chartered shares rise as wealth arm booms after market unrest
Standard Chartered shares edged up after the firm smashed profit expectations in the first quarter, but warned of the upcoming impact of geopolitical tensions.
The bank’s stock rose nearly one per cent during early trading on Friday.
The FTSE 100 lender booked $2.1bn (£1.6bn) in pre-tax profit, up from $1.9bn in the same period last year.
This was driven by a 28 per cent surge in its wealth management arm’s operating income and 17 per cent growth it global banking compared with the first quarter of 2024.
The growth came amid a period of market volatility triggered by President Donald Trump’s bombastic rhetoric. Trump sparked recessions fears which left markets reeling in the first quarter and triggered a period of sell-offs.
Standard Chartered’s global markets revenue was up 14 per cent. Total income reached $5.4bn – up 12 per cent.
Meanwhile, net interest income bolstered seven per cent to $2.8bn.
Standard Chartered up provisions after tariff turmoil
Trump’s sweeping tariffs on trading partners, unveiled during his ‘Liberation Day’ speech, narrowly missed the first quarter reporting period.
As global tensions heated up, Standard Chartered was particularly stung due to its Asia-focus and the steep levies slapped on the region.
The bank’s stock lost over 20 per cent in five days as China fired back with retalliatory tariffs on the US.
The firm recorded a $219m credit impairment charge, up 24 per cent year-on-year, with the majority of funds stemming from its wealth and retail division.
The bank said added provisions reflected “an increased probability weighting for the global trade and geopolitical trade tensions scenario given the heightened uncertainty around trade tariffs.”
Bill Withers, the firm’s chief executive, said: “The subsequent imposition of trade tariffs has increased global economic and geopolitical complexity, and we remain watchful of the external environment.
“But our ability to help clients manage their business and wealth across borders in times of volatility reinforces our confidence that we can continue to improve returns.
He added: “Our presence in structurally high-growth markets across Asia, Africa and the Middle East is key to driving long-term sustainable value for our shareholders, and we remain focused on reinforcing these competitive advantages to drive future growth.”