Standard Chartered lifts dividend 66% after record first-half profit

Standard Chartered PLC has delivered record first-half income and profit, backed by strong growth in wealth management and global banking.

The bank also increased its interim dividend by 66%, announced another $1.0 billion share buyback and upgraded its 2026 income guidance.

That is a strong package for shareholders, although rising credit impairments linked to the Middle East conflict provide an important counterweight.

Standard Chartered's key first-half figures

Unless otherwise stated, Standard Chartered's year-on-year comparisons are presented at constant currency.

Key figure	H1 2026	Change
Operating income	$11.6 billion	Up 6%
Operating expenses	$6.3 billion	Up 1%
Credit impairment charge	$446 million	Up 33%
Profit before tax	$4.8 billion	Up 9%
Profit attributable to ordinary shareholders	$3.4 billion	Up 10%
Earnings per share	151.6 cents	Up 17%
Return on tangible equity	17.6%	Up 120 basis points
Cost-to-income ratio	54.6%	Improved by 270 basis points
CET1 capital ratio	14.2%	Up 3 basis points from year-end
Interim dividend	20.4 cents per share	Up 66%

The standout point is that income rose considerably faster than costs. Operating income increased by 6%, while expenses were only 1% higher.

This created positive income-to-cost jaws of 5%. Jaws simply measure the gap between income growth and cost growth, with a positive figure indicating improved operating efficiency.

The cost-to-income ratio also improved from 57.3% to 54.6%. That means Standard Chartered spent less of each dollar of income running the business.

Wealth management was the main growth engine

Wealth Solutions income increased by 38% to $2.1 billion, including 46% growth from investment products and 15% growth from bancassurance.

Standard Chartered attracted a record $33 billion of affluent net new money and added 150,000 new-to-bank affluent clients during the half.

That translated into a particularly strong result for Wealth & Retail Banking. The division's income rose 15% to $4.9 billion, while profit before tax jumped 61% to almost $2.0 billion.

Its return on tangible equity reached 35.9%, compared with 21.1% in the prior-year period. Return on tangible equity, or RoTE, measures the profit generated from shareholders' tangible capital.

The performance suggests Standard Chartered's investment in affluent customers, relationship managers and digital capabilities is generating meaningful financial returns.

Global Banking grew, but the wider CIB result was mixed

Global Banking income rose 19%, driven by stronger origination and capital markets activity. Capital Markets & Advisory income increased by 54%, while Lending & Financial Solutions grew 13%.

However, the broader Corporate & Investment Banking division produced a more mixed result. Its income increased by 4%, but operating expenses rose 5% and credit impairments moved from a $10 million release to a $150 million charge.

As a result, divisional profit before tax declined by 2% to $3.2 billion.

Global Markets income was also 2% lower. Flow income grew 17%, supported by foreign exchange activity, digital volumes and credit trading, but this was offset by softer episodic income against a strong comparison period.

Standard Chartered's international network is still supporting growth, with network-related business representing 67% of Corporate & Investment Banking income. Even so, the figures show that not every part of the bank advanced at the same pace as wealth management.

Higher impairments are the main concern

The first-half credit impairment charge increased by $110 million to $446 million, equivalent to an annualised loan-loss rate of 26 basis points. This included $234 million of management overlays connected to the Middle East conflict.

A management overlay is an additional provision used to reflect risks that may not yet be fully captured by economic models or observed loan performance.

Standard Chartered said these increases were forward-looking rather than evidence of broad-based credit deterioration. Gross stage three loans, which include credit-impaired exposures, fell by $0.3 billion from year-end to $5.7 billion.

There are still warning signs to monitor. Stage two balances increased by 41% from year-end to $13.8 billion, primarily because of exposures affected by the Middle East overlays. Early alert balances also rose from $4.3 billion to $5.8 billion.

The bank said asset quality remained resilient, while 75% of corporate exposures were investment grade. Nevertheless, geopolitical uncertainty, energy and commodity volatility, and disruption to trade flows remain clear risks for the second half.

Dividend and buyback strengthen the shareholder return story

The interim ordinary dividend increased by 66% to 20.4 cents per share, representing a total distribution of $448 million.

Standard Chartered also announced a new share buyback of up to $1.0 billion, which is expected to begin imminently. This follows the $1.5 billion buyback completed during the first half, when the bank purchased and cancelled 62.8 million shares.

Buybacks reduce the number of shares in circulation. All else being equal, that can increase earnings attributable to each remaining share. The lower share count contributed to the 17% increase in earnings per share, which outpaced the 10% growth in profit attributable to ordinary shareholders.

The new buyback is expected to reduce the Common Equity Tier 1 ratio by 38 basis points. CET1 is a key measure of a bank's highest-quality loss-absorbing capital.

Even before that reduction, the 14.2% CET1 ratio stood 3.9 percentage points above Standard Chartered's latest regulatory minimum requirement.

Guidance has been upgraded

Standard Chartered now expects 2026 operating income growth to be around the middle of its 5% to 7% range, at constant currency and excluding material notable items.

Within that total, adjusted net interest income is expected to grow by a low single-digit percentage. Expenses excluding notable items are expected to be around $13.3 billion, while RoTE is forecast to exceed 12%.

Adjusted net interest income increased by 4% during the first half, although the net interest margin slipped by one basis point to 2.04%. Higher volumes and a better balance sheet mix helped offset lower interest rates.

Investors can compare this performance with Standard Chartered's 2025 half-year results. The full figures and accompanying risk disclosures are available in the original company announcement.

What matters for Standard Chartered shareholders now

This was a strong first half, with record income, record profit before tax, improved efficiency and a substantial increase in earnings per share.

Wealth Solutions is doing much of the heavy lifting, while Global Banking is benefiting from stronger financing and capital markets activity. The dividend increase and fresh buyback also demonstrate management's confidence in the bank's capital position.

The main issue to watch is credit risk. Current impairments largely reflect forward-looking caution, but the increase in early alert and stage two balances means investors should follow developments in the Middle East and affected credit portfolios closely.

For now, Standard Chartered enters the second half with upgraded income guidance, a 17.6% RoTE and enough capital to fund both business growth and further shareholder distributions.