Standard Chartered exceeded its three-year shareholder distribution target ahead of schedule, with Group chief executive Bill Winters describing the 2025 performance as the result of “sustained execution over several years.” The Group reported record operating income of $20.9 billion and underlying profit before tax of $7.9 billion, driven by broad-based growth across Wealth Solutions, Global Banking and Global Markets. Underlying return on tangible equity (RoTE) increased 300 basis points year-on-year to 14.7%, while underlying earnings per share rose 37% to 229.7 cents. Operating income grew 6% at constant currency, or 8% excluding notable items, while operating expenses increased 4%, producing positive income-to-cost jaws of 4%. Reported profit before tax reached $7.0 billion, up 18%. The Group ended the year with a Common Equity Tier 1 (CET1) ratio of 14.1%. It announced a further $1.5 billion share buyback alongside a proposed full-year dividend of 61 cents per share, up 65% year-on-year. Since February 2024, cumulative shareholder distributions have exceeded $9 billion, surpassing the original three-year commitment. Winters told investors that the results demonstrate the resilience of the Group’s cross-border franchise during a period marked by geopolitical tension, tariff uncertainty and financial market volatility, reinforcing the durability of its network-led model. Delivering the three-year plan ahead of schedule Standard Chartered’s 2024–2026 plan targeted 5–7% income compound annual growth, positive income-to-cost jaws and RoTE progression towards approximately 13%. Those objectives have been achieved a year early. Income of $20.9 billion represents roughly 20% growth from 2023 levels over two years. Wealth Solutions grew 24%, Global Banking increased 15% and Global Markets rose 12%. Winters characterised the growth as “broad-based,” emphasising that performance was not reliant on a single business line, geography or rate cycle. Underlying profit before tax rose 18% year-on-year to $7.9 billion. The 14.7% RoTE exceeded both the original and upgraded 2026 targets and marks the fifth consecutive year of improvement in underlying and statutory returns. Winters said the progression reflects structural changes in the business mix rather than temporary cyclical factors. Shareholder distributions have also exceeded target. The Group committed to return at least $8 billion over three years; $9.1 billion has already been announced. Winters described the early achievement as “a milestone, not a conclusion,” confirming that a refreshed medium-term framework will be presented at the bank’s May capital markets event. Deposits increasingly function as operating balances Balance sheet trends reflected a divergence in the pace of funding and lending growth. Customer deposits increased 12% to approximately $530 billion, while loans and advances grew about 5%, reducing the advances-to-deposits ratio from 61% to 57%. Interim chief financial officer Pete Burrill said the bank maintained a strong and diverse deposit base alongside high liquidity. The gap between deposit and loan growth reflects a shift in how client balances are used within the bank. Deposits increasingly serve as operating balances that support wealth investment, transaction banking and capital markets activity, alongside their traditional role as funding for lending. Global head of investor relations Manus Costello noted that client liquidity increasingly enters the bank through deposits before being allocated into investment products. Winters described a “predictable migration” from deposit balances into wealth products that continued into early 2026, reflecting sustained client demand for investment and advisory services. Wealth management expands rapidly as affluent client activity increases Wealth Solutions income increased 24% to $3.1 billion, making it the fastest-growing major business line. The bank added 275,000 affluent clients and attracted $52 billion in net new money, increasing affluent assets under management by 14% to $447 billion. Affluent clients now account for approximately 70% of wealth and retail banking income, approaching the bank’s medium-term target of 75%. The pace of growth has exceeded the bank’s original expectations. Standard Chartered had previously targeted $200 billion in net new money over five years but delivered more than one-quarter of that amount in a single year, indicating strong client engagement and sustained investment demand. In the fourth quarter alone, the bank added 72,000 new affluent clients, above its normal quarterly pace. Winters attributed this expansion to structural increases in wealth participation across Asia, Africa and the Middle East, as individuals and institutions allocate more capital into investment products and advisory relationships. Digital banks including Mox in Hong Kong, with approximately 750,000 customers, and Trust Bank in Singapore, with more than one million customers and over 20% penetration of the adult population, are being integrated more closely into the wealth and retail banking segment, strengthening client acquisition and engagement. Corridor strategy, client focus and network quality Winters framed 2025 as a test of global connectivity. Despite geopolitical tension and trade fragmentation, capital flows and trade activity continued to expand across Asia, Africa and the Middle East. He said Corporate and Investment Banking is increasingly oriented towards financial institution and cross-border clients, with progress towards increasing the proportion of income derived from financial institutions to around 60% over time. This shift reflects the higher returns on risk-weighted assets associated with flow, distribution and advisory activity. The Group has exited more than 3,000 smaller clients in recent years, reallocating capital and relationship resources to larger cross-border corporates and financial institutions. Winters described this sharpening of client focus as central to improving income quality and capital efficiency. Corporate and Investment Banking income reached $12.4 billion for the year, up 4%. Winters described the business as increasingly “a network business rather than a balance sheet business,” with approximately 60% of income now derived from network activities across trade, financial institutions and cross-border flows. Network income reached $7.6 billion, reflecting corridor growth including China to ASEAN and China to Africa. Costello emphasised that the increasing contribution from financial institution clients and cross-border flows supports higher returns on risk-weighted assets, reinforcing capital efficiency. Structural trade shifts, including supply chain re-routing and corridor growth between Asia and the Gulf, have supported transaction banking and markets activity. Rising renminbi settlement flows further reinforce the value of the Group’s network model. Transaction and markets income reflect sustained client flow activity Transaction banking generated more than $6 billion in income in 2025, including approximately $4.2 billion from payments and liquidity services. Transaction services income declined 7% year-on-year, primarily due to lower interest rates rather than reduced client activity. Underlying transaction volumes remained stable, reflecting continued client demand for cross-border payments, liquidity management and financial services. Financial markets income increased 12%, driven primarily by client flow activity including foreign exchange, hedging and settlement. Flow income now accounts for approximately 70% to 75% of financial markets revenue and has grown at approximately 10% annually. By contrast, episodic income from large client transactions declined in the fourth quarter, reflecting timing effects rather than structural changes. Flow income, which is generated from ongoing client activity, provides a more stable and recurring source of revenue. Winters pointed to structural shifts in trade, investment and capital allocation increasing demand for cross-border hedging and liquidity services, supporting sustained growth in client flow income. The bank also exceeded its sustainable finance income target of at least $1 billion in 2025 and has mobilised $157 billion since 2021 toward its $300 billion commitment by 2030, reflecting growing demand for structuring, advisory and capital distribution services. Net interest income and quarterly income dynamics Full-year net interest income increased 1% to $11.2 billion. Burrill said headwinds from lower interest rates and Wealth and Retail Banking portfolio optimisation were offset by volume growth and favourable product mix. In the fourth quarter, net interest income rose sequentially due to a temporary increase in Hong Kong Interbank Offered Rate. Burrill noted that this “improved CASA pass-through and created treasury timing benefits,” while cautioning that rates had already reversed in early 2026. Fourth-quarter income was broadly flat year-on-year at $4.8 billion, reflecting weaker episodic income in Global Markets. Burrill described episodic income as “inherently volatile” given the timing of large client transactions and market movements affecting inventory held for client activity, while noting that on a rolling 12-month basis it remains within historical ranges. Asset quality, risk normalisation and balance sheet strength Credit impairment remained low at $676 million, equivalent to a loan-loss rate of 19 basis points. The loan-loss rate is expected to normalise gradually toward 30 to 35 basis points, although portfolio quality improvements may limit future losses relative to historical averages. The Fit for Growth programme delivered $754 million of run-rate savings in 2025, with more than 300 initiatives mobilised across organisational design, process simplification and technology optimisation. Burrill confirmed that total cost-to-achieve expectations have been revised to approximately $1.3 billion over 2024–2026, compared with the original $1.5 billion estimate. He explained that the revision reflects redeployment into higher-return productivity and growth initiatives. Underlying costs at constant currency would have been approximately $12.6 billion, reflecting operating expenses associated with ongoing investments in data infrastructure, artificial intelligence enablement and performance-linked business expansion. Artificial intelligence is being deployed across credit processes, client servicing and operational workflows. Winters said the objective is to enhance productivity and control while expanding operating capacity without proportional cost growth, embedding technology as a structural enabler rather than a discrete product line. 2026 guidance and return sustainability For 2026, the bank expects reported operating income growth at constant currency to be at the bottom end of its 5–7% range, with net interest income broadly flat as currency-weighted average interest rates are expected to decline by approximately 44 basis points, partly offset by volume growth and business mix, Burrill said. Going forward, the Group will present results on a reported basis rather than an underlying basis. Burrill said this will “provide a clearer and more consistent framework” by incorporating restructuring and Fit for Growth items within reported metrics. Reported costs are expected to be broadly flat at constant currency, including the final year of Fit for Growth charges, while the bank targets statutory RoTE of above 12% in 2026. Burrill said net interest income is expected to face headwinds from lower interest rates, while the loan-loss rate is anticipated to normalise toward historical through-the-cycle levels over time. Winters said the Group has made a strong start to 2026 across non-interest income engines, despite a strong comparative first quarter in the prior year. The forthcoming medium-term framework will clarify how its network model, wealth expansion and digital enablement translate into sustainable returns above the cost of capital in a structurally evolving global financial system.
