Half Year 2024 Standard Chartered PLC Earnings Call Transcript
Key Points
- Standard Chartered PLC (SCBFF) reported a 7% increase in income to $4.8 billion in constant currency.
- The company announced its largest ever share buyback of $1.5 billion, reflecting a strong capital position.
- Wealth Solutions saw a 27% increase in income, with Investment Products income growing by 32%.
- Credit impairment provisions were modest at $73 million, with net releases from sovereign upgrades.
- The company upgraded its income guidance for 2024 to above 7% growth, indicating confidence in future performance.
- Operating expenses increased by 4% due to inflation and continued investment into business growth initiatives.
- Global Markets income was down 7% year-on-year, impacted by a strong comparator in the previous year.
- Restructuring and other charges amounted to $250 million, primarily related to the disposal of the Zimbabwe business.
- The effective tax rate for the first six months was 30%, with expectations for the full year to remain around this level.
- The company noted a potential $100 million NII headwind from U.S. dollar appreciation in 2024 versus 2023.
Good morning and good afternoon, everyone, and welcome to our second quarter of 2024 results call. We are very pleased to have delivered a strong financial performance and are very encouraged by the progress on our established strategy. We're delivering exceptional cross-border services to the world's most sophisticated entities and individuals across our corporate and investment banking and wealth businesses. Income of $4.8 billion was up 7% in constant currency, and reflecting confidence in our performance, we're upgrading our income guidance and we now expect growth for 2024 to be above 7%. We're maintaining strong discipline on costs, with expenses up 4%, while asset quality has remained resilient. This has resulted in underlying profit before tax of $1.8 billion, which was up 15%.
Our financial momentum, together with progress on key strategic drivers, leaves us confident that we can consistently and sustainably drive towards higher returns. With our strong capital position, we're delighted to
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