Standard Chartered (STAN) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong results with operating income up 12% year-on-year (excluding notable items) and EPS up 19%, driven by robust performance in Wealth Solutions, Global Markets, and Global Banking.

• The business remains resilient and diversified, with a cross-border strategy and affluent segment capturing structural growth opportunities.

• The network business, representing 60% of CIB income, is highly diversified and not overly reliant on any single trade corridor.

• Management remains confident in the long-term trajectory despite ongoing geopolitical and macroeconomic uncertainties, with a positive start to Q2 2025.

Financial highlights

• Operating income reached $5.4 billion in Q1, up 7% year-on-year at constant currency, or 12% excluding a $234 million notable item from last year.

• Profit before tax was $2.3 billion, up 12% year-on-year at constant currency; underlying RoTE at 16.4%, up 120bps.

• Operating expenses increased 5% year-on-year, with cost-to-income ratio at 54%.

• Credit impairment was $219 million, with a loan loss rate of 25bps, benefiting from low CIB impairments.

• Customer deposits rose 6% since year-end to $491 billion; loans and advances to customers broadly flat.

Outlook and guidance

• Guidance for 2025 and 2026 remains unchanged, with operating income to grow 5-7% CAGR (2023-2026) at constant currency, tracking upper end; 2025 growth expected below range excluding notable items.

• NII growth is expected to be challenging in 2025 due to lower rates and WRB transformation headwinds.

• Loan loss rate guidance maintained at 30-35bps through the cycle, expecting normalization from current low levels.

• Expense guidance for 2026 remains below $12.3 billion, including deposit insurance and UK bank levy.

• CET1 ratio target range 13-14%; plan to return at least $8 billion to shareholders from 2024-2026.