Q1 2026 Standard Chartered PLC Earnings Call Transcript
Key Points
- Standard Chartered PLC (SCBFF) reported a strong start to 2026 with record income driven by wealth solutions, global banking, and global markets.
- The company achieved a 9% increase in first-quarter income, reaching $5.9 billion, with noninterest income up 16% year-on-year.
- Profit before tax was $2.5 billion, with a return on tangible equity of 17.4% and a 31% increase in EPS.
- The company saw a 3% growth in underlying loans and advances to customers, primarily from global banking and secured wealth lending.
- Affluent net new money inflow was $18 billion, demonstrating strong engagement with a growing affluent client base.
- Net interest income (NII) was down 3% quarter-on-quarter due to lower rates, particularly HIBOR.
- The company took $190 million in precautionary overlays related to the Middle East conflict, impacting credit impairment.
- Risk-weighted assets increased by 3%, driven by asset growth and market risk, which could pressure capital ratios.
- Expenses rose by 1% year-on-year, with business growth and inflation offset by efficiency savings.
- The Middle East conflict poses ongoing risks, with potential impacts on sovereign downgrades and energy supply disruptions.
Good morning and good afternoon, everyone. Thank you for joining us today. I'll take a few minutes to lead you through our first quarter 2026 results. Then Bill, Manus and I will take your questions. In my remarks, I'll be comparing performance year-on-year at constant currency.
I'm also like stated. As a reminder, these results are now presented on a reported basis. As outlined in the press release we published on March 25. We've had a strong start to the year, delivering record income on the back of continued momentum in wealth solutions, global banking and global market to income.
We are maintaining our 2026 guidance, and we continue to expect return on tangible equity to be greater than 12% this year. Since we last spoke to you, the conflict in the Middle East has developed. Our priority remains the safety of our people and serving our clients needs.
While the spend no material impact on our portfolios, we have taken precautionary ECL overlays in order to reflect the risk of a prolonged conflict.
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