Standard Chartered Raises Full-Year 2026 Targets After Strong Quarterly Profit

Standard Chartered has raised its financial targets for 2026 after third-quarter profits comfortably exceeded market expectations. Strong performances in its wealth solutions and global markets businesses helped drive a 5.4% rise in the bank’s Hong Kong-listed shares.

International banking group Standard Chartered announced on Wednesday that it had upgraded its revenue growth and return targets for 2026 following stronger-than-expected financial results.

The bank raised its full-year revenue growth target to above 7%, from a previous outlook centred on the midpoint of its 5%-7% range. It also increased its target for return on tangible equity (RoTE), a key profitability metric, to above 14%, compared with its previous forecast of more than 12%.

Following the announcement, Standard Chartered’s Hong Kong-listed shares rose by 5.4%.

Quarterly profit beats analysts’ expectations

Standard Chartered, which generates a significant proportion of its revenue in Asia and Africa, reported July-September quarter.

The result comfortably exceeded analysts’ consensus estimate of $1.99 billion, reflecting positive momentum across the bank’s core business divisions and a broader range of revenue sources.

Like several of its European banking peers, Standard Chartered delivered strong performances across multiple business areas. However, its projected return on tangible equity for 2026 remains below that of rival HSBC. Standard Chartered is expected to achieve a return of more than 14%, compared with HSBC’s projected 17%.

The gap highlights the potential for Standard Chartered to further improve its ability to generate returns on capital despite its recent progress.

Wealth management division delivers another record quarter

Standard Chartered’s wealth solutions business recorded its third consecutive record quarter, with revenue rising 26% year on year.

The bank attributed the growth to broad-based momentum across products and geographical markets. Wealth management remains a key pillar of its long-term strategy to diversify revenue and expand its presence in high-growth financial services.

The bank has also accelerated its ambitions in this segment. It aims to attract $200 billion in net new money between 2025 and 2028, bringing forward a target that had initially been set for 2029.

Fee-based income continues to grow

The bank also reported strong growth in fee-based and other non-interest income, which is generally less sensitive to changes in tariffs and pricing structures. Fee-based income rose 19% year on year to $2.81 billion in the third quarter, exceeding analysts’ average

forecast of $2.68 billion.

The increase highlights Standard Chartered’s efforts to reduce its reliance on interest income and expand more diversified and sustainable revenue streams.

Competition across the banking sector intensifies

Standard Chartered’s revised financial targets underline its commitment to improving profitability and strengthening its position in high-growth areas such as wealth management.

Although third-quarter results surpassed analysts’ expectations, the profitability gap with HSBC and the need to sustain revenue growth remain key challenges for the bank. The positive market reaction suggests that investors have welcomed both the strong quarterly performance and the bank’s upgraded financial targets.