Komo: Standard Chartered Group (02888)'s third-quarter results far beat expectations of strong growth in core earnings and low depreciation

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that Standard Chartered Group (02888)'s third-quarter results were significantly higher than expected, with strong growth in core profit and low impairment. Revenue for the period, operating profit before provision and profit before tax were 4%, 7% and 13% higher than market expectations, respectively. The overall performance of each business line was strong; the bank reaffirmed Standard Chartered Group's “increase in holdings” rating, and the target price of HK$310 remained unchanged.

The bank pointed out that net interest income was 2% higher than market expectations, up 8% year on year and 3% quarterly, benefiting from the growth in business volume and the general stabilization of net interest spreads from quarter to quarter. The Group raised its net interest income growth guide for the 2026 fiscal year to about 4%, higher than market expectations of about 3%. Wealth management revenue increased 26% year over year, 8% higher than market expectations; impairment provision was US$90 million, 59% lower than market expectations. Hong Kong business revenue increased 25% year over year, and operating profit before provision increased 50% year over year.

The bank expects that after the third quarter results, the market's earnings per share forecast for the 2026 fiscal year will be raised by a small number of percentage points.