Standard Chartered Q1 profits beat forecasts on rising global rates

Asia-focused bank Standard Chartered on Thursday reported a better-than-expected 6% rise in first-quarter profit, boosted by rising global interest rates.

Statutory pre-tax profits rose to $1.49bn in the three months to March 31 from $1.4bn a year earlier and compared with the $1bn average estimate compiled by the bank.

“We are on track to deliver 10% return on tangible equity by 2024, if not earlier,” said chief executive Bill Winters.

He added that the bank now expected income growth this year to slightly exceed the previously guided 5%-7% range.

StanChart took a $107m charge due to the ratings downgrade of Sri Lanka, and a further $160m on its exposure to China’s troubled real estate sector.

Its wealth management division was also hit by the ongoing impact of Covid, declining 18% as it closed branches in China due to pandemic restrictions.