Standard Chartered announces $500m buyback as profits rise

Standard Chartered’s second-quarter profit rose 6.5% compared with the same period a year earlier, thanks to stronger interest income, as it announced a new $500m share buyback program.

The Asia-focused bank posted second-quarter underlying pretax profit of $1.32bn on 29 July. Operating income rose 6.5% to $3.93bn, driven by higher net-interest income as central banks increased interest rates aggressively to fight elevated inflation.

Its net-interest income rose 8.2% to $1.85bn, while its net-interest margin increased by 0.13 percentage point to 1.35%.

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For the first half, credit impairments were $267m, up $314m from a year earlier. The bank said it is alert to “an unpredictable and challenging external environment including the continued impact of Covid-19 in key markets, pressures in the China commercial real-estate sector, commodity price volatility and the impact of the Russia/Ukraine war.”

“Looking forward, whilst recession risks are rising in the West, we are seeing the early stages of a post-pandemic recovery in many of the markets in which we operate, underpinning our prospects for growth,” Stanchart’s chief executive Bill Winters said.

Write to Clarence Leong at [email protected]

This article was published by Dow Jones Newswires, a fellow Dow Jones Group title

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