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1. Company Snapshot

1.a. Company Description

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, Europe, the Americas, and the Middle East.The company operates through two segments: Corporate, Commercial and Institutional Banking; and Consumer, Private and Business Banking.It offers retail products, such as deposits, savings, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advices; and transaction banking services, such as cash management, working capital, and trade financing products.


The company also provides financial markets products and services that comprise project and transportation financing, debt capital markets and leveraged financing, financing and securities services, and sales and structuring services, as well as macro, commodities, and credit trading services.In addition, it offers digital banking solutions.The company serves financial institutions, governments, banks, investors, corporations, small businesses, and individuals.


It operates through approximately 776 branches.The company was founded in 1853 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on STAN

Standard Chartered PLC's recent performance was hindered by a decline in UK GDP, which slipped 0.1% in October, casting a shadow over the country's economic prospects. The bank's exposure to the UK market, coupled with the uncertainty surrounding the global economy, likely contributed to its woes. Furthermore, the company's efforts to navigate the complex regulatory landscape were complicated by the introduction of stricter AI regulations, which may limit its ability to innovate and expand its services. Additionally, the bank's recent earnings release highlighted a decline in revenue, which was partly attributed to a decrease in trading activity.

1.c. Company Highlights

2. Standard Chartered's 2025 Results: A Strong Performance Across Business Segments

Standard Chartered's 2025 results demonstrate the bank's resilience and strategy execution, with a record annual income of $20.9 billion, up 8% year-on-year. The bank's underlying return on tangible equity (RoTE) was 14.7%, exceeding its 2026 target a year early. Earnings per share (EPS) came in at $0.2741, slightly below analyst estimates of $0.2768. The bank's net interest income (NII) was $11.2 billion, up 1%, while non-NII increased 13% year-on-year, driven by strong performance in Wealth Solutions, Global Markets, and Global Banking.

Publication Date: Feb -25

📋 Highlights
  • Record Income Growth: 8% YoY increase to $20.9 billion, with non-NII surging 13% driven by Wealth Solutions (+24%), Global Markets (+12%), and Global Banking (+15%).
  • RoTE Exceeds Target: 14.7% underlying return on tangible equity (vs. 12% 2026 target), including 70 bps boost from Ripple/Toss gains.
  • Wealth Segment Leadership: Wealth business grew 24% with $52 billion net new money, ranking #3 in Asia with $447 billion affluent AUM (14% growth).
  • Shareholder Returns: $1.5 billion share buyback and 65% higher full-year dividend per share proposed, reflecting strong capital position (CET1: 14.1%).
  • Operational Efficiency: Cost-to-income ratio improved to 59% (4% positive jaws), with $1.3 billion invested in "Fit for Growth" program (300+ initiatives).

Segment Performance

The bank's business segments performed well, with CIB income up 4% and WRB income up 6%. The Wealth business grew by 24%, driven by $52 billion in net new money, making it the fastest-growing wealth manager in Asia. The Ventures segment, which includes digital banks Mox and Trust Bank, has made strong progress, with Mox's customer base increasing 15% year-on-year to around 750,000 customers and Trust Bank's customer numbers up 15% year-on-year to over 1 million customers.

Capital Position and Shareholder Distributions

The bank's strong capital position allows for a $1.5 billion share buyback and a proposed full-year dividend per share up 65% year-on-year. The bank's CET1 ratio was 14.1%, and it announced a new $1.5 billion share buyback. The bank targets a statutory RoTE of greater than 12% in 2026 and expects 2026 income growth to be around the bottom end of its historical 5-7% range.

Valuation and Outlook

With a P/TBV ratio of 1.21 and a dividend yield of 1.72%, the bank's valuation appears reasonable. Analysts estimate next year's revenue growth at 5.3%. The bank's cost-to-income ratio improved to 59%, with a 4% positive income-to-cost jaws. The bank's credit costs have remained low, around 20 bps, compared to a through-the-cycle estimate of 30-35 bps. The outlook for 2026 is cautious, but no concerns are seen on the radar screen.

3. NewsRoom

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FTSE 100 Live: London stocks pare gains; US futures point to mixed start

Dec -12

Source: proactiveinvestors.com

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FTSE 100 Live: London stocks off to a strong start after Dow hits new record

Dec -12

Source: proactiveinvestors.com

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South Africa Confirms Standard Chartered’s Troubling Stablecoin Warning

Nov -26

Source:

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How the Narrative Around Standard Chartered Is Evolving Amid Analyst Price Target Shifts

Nov -25

Source:

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Bitcoin Price Year-End Rally Could Resume Soon, Says Standard Chartered Analyst

Nov -19

Source:

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Bitcoin Price Year-End Rally Could Resume Soon, Says Standard Chartered Analyst

Nov -19

Source:

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Bitcoin Price Year-End Rally Could Resume Soon, Says Standard Chartered Analyst

Nov -19

Source:

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Bitcoin Price Year-End Rally Could Resume Soon, Says Standard Chartered Analyst

Nov -19

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.78%)

6. Segments

Corporate & Investment Banking

Expected Growth: 2.5%

Standard Chartered's Corporate & Investment Banking growth of 2.5% is driven by digital transformation, expansion in key markets, and diversified revenue streams. Strong performances in cash management, trade finance, and corporate banking, alongside strategic investments in technology and talent, contribute to this growth.

Wealth & Retail Banking

Expected Growth: 3.2%

Wealth & Retail Banking growth of 3.2% at Standard Chartered PLC is driven by digital transformation, increasing customer acquisition, and expanding product offerings. Strong performance in mortgages, credit cards, and deposits, particularly in Asian markets, contributes to growth. Strategic investments in technology and customer experience also enhance competitiveness and drive revenue.

Ventures

Expected Growth: 5.0%

Standard Chartered PLC's ventures growth of 5.0% is driven by digital transformation, expansion in emerging markets, and strategic investments in fintech. The bank's focus on innovation, customer experience, and partnerships has enhanced its competitive edge, contributing to steady growth in its ventures segment.

Central & Other Items

Expected Growth: 1.5%

Central & Other Items growth of 1.5% is driven by increased investment income, stable operational efficiency, and effective risk management. The segment's performance is also influenced by the bank's strategic focus on digital transformation and innovation, contributing to steady growth in this area.

7. Detailed Products

Retail Banking

Provides personal banking services to individuals, including current and savings accounts, credit cards, personal loans, mortgages, and investments.

Private Banking

Offers bespoke banking services to high net worth individuals, including wealth management, investment advice, and tailored lending solutions.

Corporate and Institutional Banking

Provides cash management, trade finance, and lending solutions to corporate clients, as well as risk management and market-making services.

Commercial Banking

Offers a range of banking services to small and medium-sized enterprises, including cash management, trade finance, and lending solutions.

Markets and Securities Services

Provides a range of capital markets and securities services, including sales, trading, and research, to institutional clients.

Transaction Banking

Offers cash management, trade finance, and securities services to corporate clients, as well as supply chain financing and factoring solutions.

Wealth Management

Provides investment advice, portfolio management, and wealth planning services to high net worth individuals and families.

8. Standard Chartered PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Standard Chartered PLC is medium due to the presence of alternative banking services and digital payment platforms. However, the bank's strong brand reputation and extensive global network mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low for Standard Chartered PLC due to the bank's diversified customer base and lack of concentration of customers. Additionally, the bank's wide range of products and services reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Standard Chartered PLC due to the bank's significant scale and global presence. The bank has a diverse supplier base, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

The threat of new entrants is low for Standard Chartered PLC due to the significant barriers to entry in the banking industry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is high for Standard Chartered PLC due to the highly competitive nature of the banking industry. The bank operates in a crowded market with many established players, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.06%
Debt Cost 8.07%
Equity Weight 34.94%
Equity Cost 8.07%
WACC 8.07%
Leverage 186.21%

11. Quality Control: Standard Chartered PLC passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
HSBC

A-Score: 7.6/10

Value: 5.7

Growth: 7.3

Quality: 6.2

Yield: 8.8

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
ING

A-Score: 6.9/10

Value: 4.8

Growth: 5.7

Quality: 4.8

Yield: 9.4

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Barclays

A-Score: 6.6/10

Value: 7.2

Growth: 7.2

Quality: 5.6

Yield: 5.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Handelsbanken

A-Score: 6.4/10

Value: 5.3

Growth: 3.8

Quality: 5.2

Yield: 9.4

Momentum: 6.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Standard Chartered

A-Score: 5.5/10

Value: 4.4

Growth: 5.6

Quality: 4.0

Yield: 3.1

Momentum: 10.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
UBS

A-Score: 4.8/10

Value: 3.2

Growth: 4.0

Quality: 4.0

Yield: 5.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.46$

Current Price

15.46$

Potential

-0.00%

Expected Cash-Flows