Standard Chartered reported a first-quarter profit at record levels, reflecting brisk client activity across investment products and stronger capital markets work, although management set aside additional credit provisions in response to geopolitical tensions.
The bank recorded operating income of $5.9 billion for the three months ended March, an increase of 9% on a constant currency basis compared with the same period a year earlier. Profit before tax rose 17% to $2.45 billion, while net profit attributable to shareholders climbed 19% to $1.9 billion.
Growth was concentrated in the bank's Wealth Solutions unit, where income surged 32% as clients increased activity in investment products and bancassurance. Global Banking also contributed to the stronger top line, with income up 19% supported by higher deal origination and greater capital markets activity.
Net interest income edged up 1% to $2.9 billion, while non-interest income expanded by 16%, underlining a shift toward fee-based revenue streams.
Credit impairment charges rose to $296 million, up $79 million from the prior year. Management said the increase largely reflected precautionary overlays tied to tensions in the Middle East.
Chief Executive Bill Winters said the bank's "advantaged market presence" and disciplined risk management supported its performance despite global uncertainty.
On profitability and capital metrics, return on tangible equity increased to 17.4% from 14.8% a year earlier. The common equity tier 1 capital ratio was reported at 13.4%.
Looking forward, Standard Chartered left its 2026 guidance unchanged, forecasting operating income growth at the lower end of a 5% to 7% range on a constant currency basis. Management expects net interest income to remain broadly flat as it pursues growth in fee-based areas.
The bank said it will keep costs broadly stable, including completing the final phase of its "Fit for Growth" programme, while targeting a return on tangible equity above 12%.
Implications for markets and the economy include continued momentum in wealth management and capital markets revenues, a modest uplift in fee-based income composition, and heightened provisioning related to geopolitical risk that may moderate near-term credit supply dynamics.