Yesterday, reported that its wealth solutions business line made $1.118 billion in operating income in the third quarter of this year, surging 26 per cent year-on-year, outpacing the 14 per cent year-on-year gain for the entire UK-headquartered banking group.
The wealth and retail banking arm logged $977 million in pre-tax profit, rising 16 per cent. Expenses increased 8 per cent on a headline basis, as continued investment in affluent, business growth initiatives and digital capabilities was partly funded by efficiency initiatives. Credit impairment was $114 million, flat compared with the prior year.
Affluent net new money balances in the wealth solutions area were a record $20 billion, helped by new-to-bank affluent client onboarding, Standard Chartered said in a statement.
“StanChart's record quarterly net new-money inflows of $20 billion underpin solid wealth momentum, with wealth up 26 per cent and higher customer activity lifting the Global Markets revenue 21 per cent," Philip Richards, senior banks analyst at Bloomberg Intelligence, said.
For the whole of Standard Chartered, profit attributable to ordinary shareholders rose sharply, up 46 per cent in Q3 to $1.504 billion. The bank’s Common Equity Tier 1 capital ratio was 13.8 per cent at the end of September, down from 14.2 per cent. Return on tangible equity increased to 15.7 per cent, a gain of 520 basis points, reflecting higher profits.
“We have long believed that the structural shifts in trade, investment and wealth creation would create significant opportunities for Standard Chartered, and our performance this quarter provides further evidence that we are capturing them,” Bill Winters, CEO, said.
Shares in the bank have chalked up a year-to-date performance of about 10.6 per cent.
Standard Chartered, which earns the bulk of its revenues in regions such as Asia, has benefited from the rising cohort of affluent and HNW individuals in this part of the world. It has actively sought to raise its wealth management capabilities profile, for example with campaigns such as "Now's Your Time For Wealth".
