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Standard Chartered Q1 Profit Soars with Strong EPS Growth

Standard Chartered Plc reports a substantial rise in Q1 profit and confirms a positive fiscal 2025 outlook, signaling strong operating income and improved EPS. This performance may bolster investor confidence.

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AI Rating:   7

Positive Earnings Growth
Standard Chartered has reported substantial growth in earnings per share (EPS) for the first quarter, rising to 56.6 US cents from 46.5 US cents year-over-year. This increase in EPS is a positive indicator for potential investors, suggesting enhanced profitability and strong operational performance.

Furthermore, the underlying EPS surged to 62.7 US cents compared to 52.9 US cents last year, adding to the encouraging earnings narrative. Both measures of profitability—the profit before taxation of $2.10 billion, up from $1.91 billion the previous year, and underlying profit before tax of $2.28 billion—illustrate robust financial health.

Revenue Growth and Performance
Operating income increased by 4.9%, rising to $5.38 billion from $5.13 billion year-over-year. Significant growth was noted at constant currency rates, with operating income up by 7%. The net interest income reflected stability and growth, posting a 7% increase as well. This revenue growth signals effective management and a growing market presence, contributing positively to investor sentiment.

Future Outlook and Projections
Looking forward, Standard Chartered has confirmed a framework for growth in operating income, projecting a CAGR of 5% to 7% for the fiscal years 2023-2026. While anticipating growth at the lower end of this spectrum excluding notable items, the projection still indicates a stable outlook amidst market challenges. This stability is likely to be reassuring for investors weighing the future performance of the bank.

Despite some concern that future growth will be below expectations, the current metrics of profitability and revenue performance position Standard Chartered favorably relative to peers in the lending sector.

Stocks:  STAN.L