Investing.com-- Asia-focused bank Standard Chartered PLC (HK:2888) (LON:STAN) on Tuesday clocked a stronger-than-expected second-quarter profit and also announced a $1.5 billion buyback on strength in its wealth management unit and strong net interest income.
The bank’s underlying profit before tax rose 14% to $1.83 billion in the three months to June 30, beating Bloomberg estimates for a profit of $1.62 billion.
The strong profit was backed by a net interest income of $2.6 billion, up 6% from last year, Stanchart said in a release on the Hong Kong Stock Exchange.
The strong earnings saw the bank roll out a buyback of $1.5 billion, commencing immediately. The buyback follows a $1 billion buyback announced during the second quarter, which was concluded recently.
The bank flagged resilience in its credit and wealth management portfolios despite weaker credit activity in China and Hong Kong due to an extended property market slump.
Stanchart upgraded its 2024 operating income guidance to growth of more than 7%, compared to prior forecasts of 5% to 7%. The lender maintained its net interest income outlook of between $10 billion to $10.25 billion.
The bank declared an interim dividend of 9 cents per share, up from the 6 cents declared last year.