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StanChart announces $1 billion share buyback as full year profit rises 18%

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© Reuters. FILE PHOTO: The Standard Chartered bank logo is seen at their headquarters in London, Britain, July 26, 2022. REUTERS/Peter Nicholls/File Photo

HONG KONG/LONDON (Reuters) – Standard Chartered (OTC:) PLC on Friday reported 2023 pre-tax profit rose 18%, in line with forecasts, and rewarded shareholders with a $1 billion share buyback.

StanChart, which earns most of its revenue in Asia, said statutory pretax profit for 2023 reached $5.09 billion, in line with $5.1 billion from 15 analyst estimates compiled by the bank.

The bank took a $850 million impairment mainly from its stake in Chinese lender Bohai Bank, its second time writing down the value of the unit as the lender was hit by increasing bad loans as growth in the world’s second-largest economy sputtered.

The bank set out restrained new guidance on its future performance, saying it expected income to grow 5-7% between 2024 and 2026, as against 10% growth in 2023.

The lender said it would aim to increase return on tangible equity, a key profitability metric, ‘steadily’ from the current level of 10% to 12% by 2026.

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