By Sherry Qin
Standard Chartered reported lower-than-expected annual profit and announced a $1.5 billion share buyback as the emerging markets-focused bank searches for a new finance chief amid its restructuring program to cut costs.
The London-based lender, which generates much of its profit in Asia, said Tuesday that net profit rose 27% to $4.56 billion in 2025. The figure was below analysts' estimate of $4.77 billion, according to Visible Alpha.
The bank's net interest income--the difference between what it earns on loans and pays on deposits was $11.2 billion last year, edging up 1% amid lower interest rates and margin compression.
Like its Asian peers, StanChart has experienced growing demand for its wealth products amid geopolitical uncertainties and market volatility. The lender's wealth solutions business has been a key highlight of its financial reports in recent quarters and recorded 24% growth in 2025.
For the final quarter of the year, underlying profit before tax increased 18% to $1.235 billion, but net profit declined 5.7%, missing expectations for growth. Analysts at Jefferies said StanChart's weaker-than-expected episodic income was due to the timing of large deals, which weighed on the fourth quarter.
The bank said it will commence a new $1.5 billion share buyback imminently, in addition to the $2.8 billion already announced over the past year. It also declared a final dividend of 49 cents a share, resulting in a 65% increase in full-year dividend.
StanChart said its underlying return on tangible equity, a key profitability measure, reached 14.7% in 2025, exceeding its 13% target a year early.
The lender's Hong Kong-listed shares were volatile after the results, swinging between gains and losses. The stock was recently about 3% higher.
In 2026, the bank expects operating income growth around the lower end of a 5% to 7% range in constant currency terms, excluding notable items, with net interest income growth likely to be broadly flat.
While acknowledging the shifting market environment, Chief Executive Bill Winters said the bank has made further progress in maximizing its competitive advantage by serving international clients with cross-border products and helping affluent customers manage their wealth across Asia, Africa and the Middle East.
In the middle of its restructuring drive, the U.K.-based, Asia-focused bank now has to navigate a leadership change following the sudden departure of its chief financial officer. The lender named Peter Burrill as interim CFO after Diego De Giorgi, seen as a front-runner to succeed StanChart's longtime CEO, stepped down earlier this month to join Apollo.
De Giorgi is credited with driving the group's efficiency program, which has boosted profit and the bank's share price. Analysts said he also improved investor communications after becoming CFO in January 2024.
Morningstar analyst Kathy Chan said the CFO exit is likely to have limited operational impact, with Burrill expected to continue delivering on targets in the near term as the lender works to complete its restructuring plan.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
February 24, 2026 01:50 ET (06:50 GMT)
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