StanChart in $1bn buyback as profits rise, but trims income forecast

(Sharecast News) - Asia-focused bank Standard Chartered on Friday unveiled a new $1bn buyback, increased dividend and higher annual profits, but reined in guidance on income for the current year. The bank reported an 18% rise in pre-tax profit to $5.1bn and lifted its full-year dividend 50% to 27 cents a share, well above estimates of 23.7 cents.

However, it also forecast income growth at the upper end of 5-7% this year, down from the previous estimate of 8-10% given last October. The lender reported a 13% rise in income in 2023 on a constant currency basis.

Looking ahead, the lender said it would aim to increase return on tangible equity from the current level of 10% to 12% by 2026.

StanChart also booked an extra $150m impairment from its stake in Chinese lender Bohai Bank in the final quarter, taking the total write-down to $850m in another example of the fragile state of the property sector in China.

Reporting by Frank Prenesti for Sharecast.com