Xiaomo: Reiterates Standard Chartered Group (02888)'s target price for “gain” rating of HK$295

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that Standard Chartered Group (02888)'s revenue for the second quarter of 2026 was 3%, 9%, and 17% higher than the company's compiled consensus, respectively. Standard Chartered was Motong's first choice among banks in the Mainland and Hong Kong. Because revenue growth was better than expected, depreciation provisions were 37% lower than expected, and customer and asset growth was still strong. The “Overweight” rating was reaffirmed, and the target price was HK$295.

The bank expects that after the announcement of the company's second-quarter results, the market will raise its earnings per share forecast by a low to medium number of units, bringing room for an upward trend in the market's expected return on tangible share capital in 2028. Strong ROTE expansion will be the main support to further increase the market account ratio multiplier. Standard Chartered currently trades at a price-earnings ratio of 10 times, a price-to-earnings ratio of 1.2 times, and a net tangible asset value multiple of 1.4 times, corresponding to the 2027 forecast ROTE of 14.9% or return on equity of 12.8%.