Standard Chartered Initiates USD1 Billion Share Buyback Program

Standard Chartered PLC, a prominent bank with a strong presence in London and Asia, has officially launched a share buyback program. The financial institution is setting out to repurchase up to USD1 billion worth of its shares. This strategic move aims to decrease the total number of outstanding shares in the company and has a target completion date of August 23.

Share Buyback Announcement

Last Friday, the bank made the share buyback announcement in conjunction with the disclosure of its full-year financial results. Standard Chartered also communicated its intention to return a minimum of USD5 billion to its shareholders during the period from 2024 to 2026, signifying a commitment to enhancing shareholder value.

Financial Performance Highlights

In the year 2023, Standard Chartered reported a substantial operating income of USD18.02 billion, marking a 10% raise from the USD16.32 billion recorded in the prior year. The bank saw a 2.4% rise in net interest income to USD7.77 billion, up from USD7.59 billion, while non-interest income soared by 17% to reach USD10.25 billion, a notable increase from USD8.73 billion. Despite achieving a 19% uptick in pretax profit at USD5.09 billion, up from the previous USD4.29 billion, the results slightly missed the anticipated consensus forecast of USD5.12 billion.

The bank's net interest margin was reported at 1.67%, surpassing the consensus estimate of 1.66% and showing improvement from the 1.41% in 2022. Another positive indicator was the underlying return on tangible equity, which climbed to 10.1% from 7.7%, showcasing an upward trend in profitability.

Market Performance

In recent market activity, Standard Chartered's stock price rose by 2.2% on Monday, reaching 649.20 pence per share. However, a broader perspective shows that the stock value has fallen by 18% over the last 12 months, reflecting the dynamic and fluctuating nature of the banking sector.

buyback, banking, shares