Standard Chartered launches £1.2bn share buyback and 65% dividend increase despite missing analyst profit expectations, as wealth division delivers record performance.
Standard Chartered has announced a $1.5 billion share buyback plan and a substantial 65% increase in dividends to shareholders, even as the bank’s pre-tax profit fell short of analyst forecasts, reporting $814 million, below the anticipated $1.1 billion, reports BritPanorama.
The bank experienced a two percent increase in pre-tax profit for the year 2025, driven by a decline in net interest income, which dropped by 12% to $1.5 billion in the final quarter despite a year-on-year increase.
For the full year, Standard Chartered achieved a pre-tax profit exceeding $7 billion, rising from $6 billion the previous year. However, annual operating expenses rose four percent to $12.3 billion, a change attributed to investments in business growth and recruitment.
Notably, the wealth management division thrived, generating a 24% increase in income to $3.1 billion, fuelled by record inflows of $52 billion and the acquisition of over 275,000 affluent clients.
Despite the profit shortfall, Standard Chartered is moving forward with its capital return plans. This includes declaring a final dividend of 49 cents per share, resulting in a total dividend for 2025 of 61 cents.
Earlier this month, the bank faced its most significant share price drop since Donald Trump’s ‘Liberation Day’ tariffs, with shares falling six percent following the announcement of finance chief Diego De Giorgi’s departure to join asset manager Apollo.
The annual report, released recently, highlighted that chief executive Bill Winters’ compensation rose to £12.7 million in 2025, driven by bonuses and share awards totaling £10.5 million.
De Giorgi was considered a key player behind the bank’s ‘Fit for Growth’ initiative, introduced in 2024 to digitise operations and reduce costs by approximately $1.5 billion over three years.
His exit has sparked discussions about succession planning for Winters, who has the longest tenure as chief executive among major British banks, with analysts previously marking De Giorgi as a potential successor.
The ongoing developments at Standard Chartered illustrate the complexities of navigating performance expectations in the financial sector. While shareholder returns remain a priority, the challenges of meeting profit targets amidst operational expansions will likely require strategic adjustments moving forward.
