JPMorgan issued a research report stating that STANCHART (02888) delivered second-quarter pre-provision operating profit (PPoP) and profit before tax (PBT) that exceeded expectations by 12% and 23% respectively, primarily driven by non-net interest income performance that significantly outperformed forecasts. The bank maintains its target price of HK$148 for STANCHART and reaffirms its "Overweight" rating.

The bank noted that STANCHART remains its top pick, mainly because management observed a strong start to the third quarter and raised the 2025 total income expectation to the lower end of the 5-7% range. Additionally, the bank expects STANCHART's earnings per share for fiscal years 2025-2026 to see low single-digit upward revisions, benefiting from slightly increased total income in 2025 and reduced provisions.

Combined with a robust Common Equity Tier 1 capital adequacy ratio of 14.3%, STANCHART announced a US$1.3 billion share buyback program and a dividend per share of 12.3 cents. The potential 12-month return stands at 8.1%, ranking second among financial companies in the Greater China region.