Standard Chartered reported record operating income of $11.6 billion for the first half of 2026, an increase of 6% at constant currency from $10.9 billion during the same period last year.
Excluding a $238 million gain from the Solv India transaction recorded in the prior-year period, operating income increased 8%.
Profit before tax rose 9% to a record $4.78 billion. Profit attributable to parent company shareholders increased 10% to $3.65 billion, while profit attributable to ordinary shareholders rose to $3.37 billion from $3.07 billion.
Basic earnings per share increased 17% to $1.516. The improvement reflected higher earnings and a reduction in the company’s outstanding share count following successive repurchase programs.
Return on tangible equity increased by 1.2 percentage points to 17.6%. Standard Chartered’s cost-to-income ratio improved to 54.6% from 57.3%, meaning the bank used a smaller share of its revenue to cover operating expenses.
Operating expenses increased 1% to $6.34 billion. Excluding notable items, expenses rose 2% as investments in wealth management, corporate banking and technology were partly offset by efficiency savings and lower legal costs.
Adjusted net interest income increased 4% to $5.74 billion. Growth in lending volumes and an improved balance-sheet mix offset part of the effect of lower interest rates.
Net interest margin was broadly stable at 2.04%, compared with 2.05% during the first half of 2025. Average interest-earning assets increased 5% to $567 billion, while the average rate paid on interest-bearing liabilities declined by 54 basis points.
Adjusted non-interest income increased 8% to $5.86 billion. Excluding the prior-year Solv India gain, adjusted non-interest income rose 13%, supported by wealth products, financing activity and capital markets transactions.
Wealth Solutions delivered record first-half income of $2.11 billion, representing constant-currency growth of 38%.
Investment Products income increased 46% to $1.63 billion, while Bancassurance income rose 15% to $480 million.
Affluent net new money reached a record $33 billion. Standard Chartered also added approximately 150,000 new-to-bank affluent clients during the first half.
The bank is expanding its affluent banking business by hiring relationship managers, improving digital services and offering more investment, insurance and wealth-management products across its Asian, African and Middle Eastern markets.
Wealth & Retail Banking generated profit before tax of $1.99 billion, an increase of 61% at constant currency.
Income in the segment rose 15%, led by Wealth Solutions. Operating expenses declined 1% on a reported basis as efficiency savings and provision releases offset investments in affluent banking and digital capabilities.
Credit impairment charges within Wealth & Retail Banking declined to $296 million from $353 million. Standard Chartered attributed the improvement to portfolio risk reductions and stronger underlying credit performance, partly offset by forward-looking provisions associated with the Middle East.
Global Banking income increased 19% to $1.31 billion.
Lending and Financial Solutions income rose 13%, reflecting increased loan origination and distribution activity. Capital Markets and Advisory income increased 54% as bond issuance fees and mergers and acquisitions activity improved.
Transaction Services income increased 1%, with Securities and Prime Services growing 17% because of higher custody balances and client volumes.
Global Markets income declined 2%. Flow income increased 17%, supported by foreign-exchange activity, digitally generated volumes and credit trading, but this was offset by weaker episodic trading income compared with a strong prior-year period.
Corporate & Investment Banking generated profit before tax of $3.24 billion, a constant-currency decline of 2%.
Income increased 4%, but expenses rose 5% because of strategic hiring and additional marketing and investment spending.
The segment recorded a $150 million credit impairment charge, compared with a $10 million release in the previous year. The increase was primarily associated with forward-looking management overlays for risks connected to the Middle East conflict.
Central and other operations recorded a loss before tax of $442 million, compared with a loss of $135 million. The change reflected the absence of the previous year’s Solv India gain and losses from minority investments.
Total group credit impairment charges increased to $446 million from $336 million. The charge represented an annualized loan-loss rate of 26 basis points.
Standard Chartered included approximately $234 million of management overlays associated with the Middle East conflict. These provisions address potential risks involving the petrochemical industry, possible sovereign credit-rating downgrades and retail banking portfolios considered vulnerable to regional disruptions.
The bank also increased the probability assigned to its two downside economic scenarios to 60% from 41% at the end of 2025. One scenario assumes a prolonged geopolitical crisis that disrupts energy supplies and keeps global commodity prices elevated.
Standard Chartered said the higher provisions were primarily forward-looking and did not indicate broad deterioration across its loan portfolio. Approximately 75% of its corporate exposure remained investment grade, while 88% of Wealth & Retail Banking exposure was fully secured by collateral.
Net loans and advances to customers increased 4% from the end of 2025 to $299.28 billion. Customer accounts rose 4% to $552.64 billion, while total assets increased 8% to $993.41 billion.
Stage 2 loans, which indicate a meaningful increase in credit risk but are not necessarily impaired, increased to $13.76 billion from $9.82 billion. The increase largely reflected corporate exposures affected by the bank’s Middle East overlays.
Stage 3 loans, representing credit-impaired exposures, declined to $5.71 billion from $5.96 billion.
The Common Equity Tier 1 capital ratio ended June at 14.2%, up 77 basis points from the end of the first quarter. The liquidity coverage ratio was approximately 148%, and the leverage ratio remained at 4.7%.
Standard Chartered completed a $1.5 billion share repurchase program during the first half and announced another $1 billion buyback. The new program is expected to reduce its Common Equity Tier 1 ratio by approximately 38 basis points.
The board also increased the interim dividend by 66% to $0.204 per share, representing an aggregate distribution of approximately $448 million.
Second-quarter operating income increased 3% to $5.7 billion. Excluding the prior-year Solv India gain, revenue rose 8%.
Adjusted net interest income increased 7% to $2.87 billion, while adjusted non-interest income was broadly stable at $2.83 billion. Excluding the Solv India transaction, non-interest income increased 9%.
Wealth Solutions income rose 43% during the quarter, while Global Banking income increased 18%.
Second-quarter profit before tax increased 2% to $2.33 billion, with return on tangible equity remaining at 17.9%. Basic earnings per share increased 7% to $0.774.
Following the first-half performance, Standard Chartered revised its 2026 outlook.
The bank now expects operating income growth to be around the midpoint of its 5% to 7% constant-currency range, excluding material notable items. This implies growth of approximately 6%.
Net interest income is expected to increase by a low-single-digit percentage, while expenses excluding notable items are forecast to be approximately $13.3 billion at constant currency.
Standard Chartered continues to expect full-year return on tangible equity above 12%.
KEY QUOTE:
“We delivered a record first-half performance in 2026, with double-digit growth in Wealth Solutions and Global Banking. Our performance demonstrates the strength of our differentiated international network and the disciplined execution of our strategy.”
“Clients continue to turn to us to facilitate trade, investment and wealth flows across the world’s most dynamic markets. We delivered a 17 per cent increase in our earnings per share, and our upgraded income guidance and new share buyback of $1.0 billion reflect our confidence in the business.”
Bill Winters, Group Chief Executive of Standard Chartered
