JPMorgan has released a research report adjusting its forecasts for Standard Chartered Group (02888). The bank now projects a 2% growth in net interest income for the 2026 fiscal year, surpassing both management guidance and market expectations, and anticipates total revenue growth of approximately 6%.

The firm has rolled its valuation base forward to December 2027, leading to an increase in the price target for Standard Chartered from HK$275 to HK$295, while maintaining an "Overweight" rating.

JPMorgan expects Standard Chartered's adjusted pre-tax profit for the second quarter to contract by about 15% year-on-year. This is primarily attributed to a high base effect from the $238 million gain on the sale of Solv India recorded in Q2 2025 and higher incidental income, coupled with front-loaded costs.

However, the bank views any potential share price pullback following the weaker Q2 results as a buying opportunity. This perspective is based on the company's underlying operational trends remaining robust, supported by tailwinds from Chinese corporate multinational business and network income.

The report estimates that business and investment from Chinese enterprises, including network revenue originating from China, accounts for roughly 10% of Standard Chartered Group's total revenue. The relaxation of mainland China's cross-border regulations for corporates and the acceleration of RMB internationalization are seen as providing potential support for non-interest income assumptions.

Furthermore, JPMorgan forecasts a share buyback program of $1 billion for Standard Chartered in the first half of 2026. The total return ratio (comprising dividends and buybacks relative to profit) is expected to rise from 42% in the first half of 2025 to 48% in the first half of 2026.