Yahoo Finance

• Return on Tangible Equity (RoTE): 11.7%, up 160 basis points year-on-year.

• Record Income: $19.7 billion in 2024.

• Net Interest Income (NII): $10.4 billion, up 10%.

• Non-NII: Up 20%, driven by Wealth Solutions and Global Markets.

• Operating Expenses: Up 7% for the year.

• Credit Impairment: $557 million, up 5%.

• Profit Before Tax: Up 21%.

• Full Year Dividend Per Share: Increased by 37%.

• Share Buyback: New $1.5 billion announced.

• Capital Distributions: Total $4.9 billion since full year 2023 results.

• Loan Loss Rate: 19 basis points in 2024.

• Underlying Loans and Advances Growth: 4% for the year.

• Customer Deposits: Up 1% in 2024.

• CET1 Ratio: 14.2% in 2024.

• Wealth Solutions Income: Up 36%.

• Affluent Net New Money: $44 billion in 2024.

• Sustainable Finance Income: $982 million, up 36% year-on-year.

• Warning! GuruFocus has detected 4 Warning Sign with SCBFF.

Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Standard Chartered PLC (SCBFF) achieved a return on tangible equity of 11.7% in 2024, up 160 basis points year-on-year.

• The company reported record income of $19.7 billion, with strong performances in Wealth Solutions and double-digit growth in Global Markets and Banking.

• A 37% increase in full-year dividend per share was announced, along with a new $1.5 billion share buyback.

• The Fit for Growth program is progressing well, achieving $200 million in annualized savings from executed projects in 2024.

• The company is on track to meet its target of at least $8 billion in shareholder distributions by 2026.

Negative Points

• Operating expenses increased by 7% in 2024, with credit impairment rising by 5% to $557 million.

• A $561 million write-off of software assets was recorded, impacting the company's financials.

• Restructuring charges amounted to $441 million, primarily due to organizational transformation actions.

• The loan loss rate is expected to normalize towards 30 to 35 basis points, up from 19 basis points in 2024.

• There is a headwind of around 1% to NII in 2025 from the WRB transformation actions announced in Q3.

Q & A Highlights

Q: Can you elaborate on the expected revenue growth for 2025, given the strong performance in Q4 2024? A: William Winters, Group CEO, noted that while the company expects to be at the higher end of the 5% to 7% CAGR target for 2023 to 2026, they are not changing their guidance. The strong momentum from Q4 2024 has carried into 2025, and the company is pushing for every bit of upside. However, they remain cautious due to external factors, although they are optimistic about the franchise's position and the supportive environment.