Standard Chartered (STAN) Q4 2024 earnings summary

Executive summary

• Delivered record income of $19.7 billion in 2024, up 14% year-over-year, with strong performances in Wealth Solutions and double-digit growth in Global Markets and Banking.

• Return on tangible equity (ROTE) reached 11.7%, up 160 basis points year-over-year.

• Announced a 37% increase in full-year dividend per share and a new $1.5 billion share buyback, bringing total shareholder distributions since 2023 to $4.9 billion.

• Fit for Growth program is ahead of plan, delivering $200 million in annualized savings in 2024 and driving operational efficiency.

• Positive start to 2025, tracking towards upper end of 5-7% income CAGR target for 2023-2026.

Financial highlights

• Operating income rose to $19.7 billion, exceeding guidance, with adjusted income up 12% and FY'24 income up 14% YoY at constant currency.

• Net interest income (NII) was $10.4 billion, up 10% year-over-year; non-NII grew 20%.

• Operating expenses increased 7%, with credit impairment at $557 million, up 5%.

• Profit before tax increased 21% year-over-year; underlying profit before tax for FY'24 was $6.8 billion.

• Underlying earnings per share rose 30% to 168.1 cents; tangible net asset value (TNAV) per share up 148 cents to 1,541 cents.

Outlook and guidance

• Tracking to the upper end of 5%-7% CAGR income growth target for 2023-2026, though 2025 growth expected below this range.

• Expecting positive jaws each year and maintaining cost cap guidance of $12 billion (like-for-like) for 2026; expenses target for 2026 set at below $12.3 billion including deposit insurance and UK bank levy.

• ROTE target approaching 13% in 2026, with further progress expected beyond.

• Distribution target of at least $8 billion between 2024 and 2026 remains unchanged.

• CET1 ratio guidance of 13-14%.