<Results>STANCHART 1Q Underlying PBT Hikes 24.8% to US$2.13B, Way Beyond Forecast

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STANCHART (02888.HK) +0.800 (+0.656%) Short selling $2.88M; Ratio 4.539% announced its results for 1Q24 ended March. Underlying profit before tax was US$2.129 billion, hiking 24.8% YoY, way stronger than the forecast of 3 brokers as summarised by our reporters, which ranged from US$1.555 billion to US$1.639 billion (down 3.9%-8.9% YoY), and up 27% on a constant currency basis.

Dividend History

Announce Date	Event	Particular
2024/02/23	Final	D:USD 0.2100 (Equivalent to approximately HKD 1.641434, With USD, HKD or GBP option)
2023/10/26	3rd Quarterly	No Dividend
2023/07/28	Interim	D:USD 0.0600 (Equivalent to approximately HKD 0.469085, With USD, HKD or GBP option)
2023/04/26	1st Quarterly	No Dividend

Reported profit before tax for 1Q reached US$1.914 billion, rising 5.9% YoY, also far exceeding the forecast of US$1.282 billion to US$1.47 billion (down 18.7%-29.1% YoY) by the 3 brokers summarised by our reporters, and up about 8% on a constant currency basis. Underlying EPS for 1Q was US52.9 cents, while reported EPS was US46.5 cents.

Underlying operating income for 1Q24 increased 17.2% to US$5.152 billion, or 20% on a constant currency basis. On a constant currency basis, underlying net interest income (NII) grew by about 5% to approx. US$2.419 billion, with net interest margin increasing by 6 bps QoQ to 1.76%. Underlying non-NII elevated around 37% to approx. US$2.733 billion. The loan-loss rate for 1Q was 23 bps. The expected total provisions for credit losses for the China commercial real estate portfolio is US$1.2 billion.

STANCHART's Common Equity Tier 1 (CET1) ratio was broadly flat at 13.6% at the end of March this year, following the full impact of the US$1 billion share buyback announced in February this year. The increase in underlying profit was more than offset by an increase in risk-weighted assets. The group has now completed approximately two-thirds of its share repurchases.

The group maintained its 2024 guidance, with operating income growth in the year expected to be close to the top end of the range of 5% to 7%, excluding two significant items in 1Q24. The full-year NII guidance is between US$10 billion and US$10.25 billion on a constant currency basis, along with positive income-to-cost jaws on a constant currency basis (excluding the UK bank levy).

STANCHART Group CEO Bill Winters said the group delivered a strong set of results in 1Q24, with double-digit growth in income and positive operational leverage. Business performance was strong and broad-based across its segments, products and markets in what continues to be an uncertain environment. The group has taken action to create a simpler and more efficient organisation with changes to the management structure, as the group advanced its "Fit for Growth" programme.

STANCHART remained confident in the delivery of its financial targets, and would continue to increase its full-year DPS over time. Return on Tangible Equity (RoTE) is guided to increase steadily from 10%, targeting 12% in 2026 and progress thereafter.

(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-30 16:25.)

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