Proactive Investors - Standard Chartered PLC (LON:STAN) has strengthened its full-year guidance after what it felt was a strong first quarter, with profits up by a quarter.
The emerging markets-focused bank reported US$4.4bn of income for the first three months of the year, up 8%, or 13% at constant currency rates.
Net interest margin (NIM), the profitable gap between lending and borrowing rates, rose to 1.63% from 1.58% in the fourth quarter of last year, with the lender saying the benefit from rising interest rates was partly offset by increased hedge losses and adverse liability and asset mix.
An underlying profit before tax of US$1.7bn for the quarter was up 25% at constant currency rates, with the statutory PBT also up 25% to US$1.8bn. This was above City expectations of US$1.4bn.
The lender also promised to return US$5bn to shareholders by 2024, increased from its current US$1bn share buyback and US$1.2bn in expected dividends for this year and next.
Chief Executive Bill Winters said the performance “continues to improve” across its markets and products despite the continued uncertain environment.
“We remain optimistic about our continued strong performance and now expect 2023 income to grow around 10%, the top end of our range, and remain confident in the delivery of all of our financial targets, including our return on tangible equity targets.”
Shares rose 0.9% to 626.4p in first deals on Wednesday.