Standard Chartered (LON:STAB) interim Chief Financial Officer Pete Burrill said the bank entered 2026 “in a real position of strength” after meeting or exceeding a set of three-year targets a year early, and he indicated that trends seen in 2025 have carried into the first quarter.
2025 performance and early 2026 trends
Burrill said the bank’s 2025 outcomes included delivering income growth and an underlying return on tangible equity (ROTE) of 14.7%, ahead of a 13% target. He added that costs and credit quality were kept “in check,” and that the bank exceeded its distribution target while increasing both buybacks and dividends, including what he described as a sizable dividend increase.
Guidance and risk outlook, including the Middle East
Asked whether recent events could threaten 2026 targets—previously described as over 12% ROTE, mid-single-digit income growth, and broadly flat costs—Burrill said there was nothing prompting a change to the guidance issued a few weeks earlier. He said there were no direct impacts to staff or operations and that his “first order” focus was credit quality.
On the Middle East, Burrill said the bank’s main Corporate & Investment Banking (CIB) operations are in the UAE, Qatar, and Saudi Arabia, and that the Middle East CIB portfolio is “vast majority, over 80% investment grade,” largely financial institutions, multinational corporations, and government-related entities. He said he saw no immediate “first order” signs of concern, while adding the bank remained cautious about how conditions develop.
In Wealth & Retail Banking (WRB), Burrill said the bank’s exposure is primarily in the UAE and is “almost all” secured mortgages with low loan-to-value ratios, adding that the bank no longer has an SME business in the UAE. In a later audience question, he said UAE mortgage portfolio loan-to-value ratios are “sub 50” and that the bank was not seeing signs of stress.
On “second order impacts,” Burrill said it was too early to assess potential implications for oil prices, inflation, interest rates, and GDP.
Credit quality, portfolio positioning, and Hong Kong commercial real estate
Burrill reiterated a medium-term, through-the-cycle credit charge guidance of 30–35 basis points, saying it “bakes in some unforeseen events” and noting that “zero is not normal.” He said overall loan losses were 19 basis points last year, with “virtually nothing” in CIB, including a $4 million charge, and he noted the prior year included a net recovery.
He said the bank has shifted CIB toward “origination and distribution” and more investment-grade exposures, while WRB has been repositioned toward affluent and wealth management, including geographic and portfolio exits from consumer unsecured lending. He added the bank pays close attention to concentration risks by geography and industry and is cautious about underwriting new areas it does not fully understand.
Asked about Hong Kong commercial real estate, Burrill said the bank’s exposures are “reasonably limited” and “have not deteriorated.” He said the bank is “well provided where we need to,” with limited Stage 3 exposures, and that it maintains overlays for potential downgrades. He also said the office market is “recovering” and showing “signs of recovery,” rather than deterioration, in the areas where the bank is involved.
Growth priorities: wealth, markets, and trade flows
On revenue opportunities, Burrill highlighted wealth management as a core strategic focus in WRB, saying the business has delivered roughly 10% growth over the past decade and has accelerated recently. He said Standard Chartered is the “third largest wealth manager in Asia” and claimed it has been growing faster than competitors. Burrill said net new money was $52 billion last year, representing 14% of assets under management.
He attributed performance to brand presence in key hubs such as Singapore and Hong Kong, connectivity to China, and an “open architecture” approach to product selection. He emphasized the bank’s WRB strategy is focused on “cross-border and affluent,” rather than serving “everything for everyone.” He also referenced a previously announced plan to invest $1.5 billion into WRB, including relationship managers, technology platforms, and “Priority Private” centers.
Discussing global trade and potential disruption, Burrill said the bank believes trade will continue to flow even if routes and corridors shift, arguing that Standard Chartered’s advantage is the breadth of its network rather than reliance on a single corridor. He said the bank has seen strong growth in banking and markets businesses despite “tariff noise,” while noting that rates have affected transaction services.
In markets, Burrill described “flow” revenues—linked to hedging and client activity in rates, FX, commodities, and capital movement—as having grown at double-digit rates for several years, which he expects can continue. He said “episodic” revenues are inherently variable but have been largely range-bound historically, and he described markets as a capital-efficient business the bank is comfortable growing.
Costs, capital return priorities, and digital assets
On costs, Burrill cited “positive jaws” performance in 2025 and 2024 and described cost discipline as a mindset tied to improving ROTE and reducing the cost-to-income ratio. He said the bank’s Fit for Growth program has supported standardization, simplification, digitization, technology simplification, and automation, and he said the search for productivity would continue beyond the program’s conclusion. He reiterated guidance for costs to be “broadly flat” in 2026, while deferring additional guidance to a Capital Markets Day in May.
On capital returns, Burrill said the bank’s first priority is funding business growth, while noting that a shift toward a more “capital light” model has reduced the need for significant risk-weighted asset growth. He said wealth management is not capital intensive. Burrill emphasized the importance of a sustainable dividend that grows with earnings and said buybacks have been a critical tool, without specifying a valuation “trigger point.” He said more detail would be provided in May.
On digital assets, Burrill said the bank has been “active and proactive,” citing Zodia Markets, Zodia Custody, and a tokenization platform. He said the bank is applying for a stablecoin license in Hong Kong with the Hong Kong Monetary Authority and wants to be part of the ecosystem as it develops. He said client interest is increasing but that stablecoins have not yet had a significant impact, and he emphasized the importance of facilitating clients’ use cases, including cross-border money movement, while noting the continued role of the “stablecoin to fiat leg.” Burrill said the bank has conducted pilots and has the capability for tokenized deposits, but he said client uptake has not been significant so far.
On artificial intelligence, Burrill said the bank is in the “early innings” of adoption, with the most impact so far in enabling wealth relationship managers to be more productive in preparation for client meetings and idea generation, rather than direct client interaction. He said pilots are ongoing for broader efficiency use cases, and he highlighted that regulatory considerations and data confidentiality remain important constraints.
Finally, Burrill reiterated guidance for net interest income to be “broadly flat” year-on-year, citing rates as a headwind, portfolio actions that reduce unsecured exposures (which he said represent about a 2% headwind), and the potential for changes in deposit pass-through rates. He added that volume growth and mix shifts in assets and liabilities could offset those headwinds and said nothing had changed his view on that guidance.
About Standard Chartered (LON:STAB)
Standard Chartered PLC is an international banking company. The Banks’s segments include Corporate & Institutional Banking, Retail Banking, Commercial Banking and Private Banking. Its Corporate & Institutional Banking segment allows companies and financial institutions to operate and trade globally, and its Private Banking segment supports high net worth individuals with their banking needs across borders and offers access to global investment opportunities. Its Retail Banking segment offers clients, as well as small businesses a range of banking support solutions, and its Commercial Banking segment provides mid-sized companies with financial solutions and services.
