Standard Chartered Announces $1.3 Billion Buyback After 44% Profit Jump

Standard Chartered announced a $1.3 billion stock repurchase program following its second-quarter 2025 earnings, which significantly exceeded market expectations. The bank reported an adjusted pre-tax profit of $2.4 billion for the quarter, surpassing the $1.9 billion estimate tracked by Bloomberg [1]. This performance marks a 44% increase in pre-tax profit compared to the same period in the previous year [2]. The buyback is part of a broader strategy to return at least $8 billion to shareholders between 2024 and 2026 [3].

The latest repurchase follows a $1.5 billion buyback initiated in February 2025, making it the second major shareholder return move in just six months [4]. The bank’s shares have gained over 30% year-to-date, despite a period of volatility in April following U.S. President Donald Trump’s announcement of new global tariffs [5]. Standard Chartered’s return on tangible equity also improved to 17.9%, far exceeding the 11.7% forecast and up from 10.4% in the same quarter of the previous year [6].

The bank’s strong earnings performance was supported by robust client activity, particularly in its wealth management division, which attracted $16 billion in new client assets during the quarter—an all-time high [7]. This influx of capital contributed to the bank’s overall profitability and reinforced its ability to accelerate shareholder returns.

Standard Chartered is also continuing its cost-cutting initiative called “Fit for Growth,” which aims to reduce expenses by up to $1.5 billion. The program includes shutting down non-core operations, scaling back infrastructure, and cutting property-related costs. Roughly half of the expected cost reductions are expected to be realized in 2025 [8]. CEO Bill Winters, in his 10th year leading the bank, has been central to driving these changes, which include significant reorganizations and job cuts over the past decade [9].

The bank’s strategy of aggressive cost control and shareholder returns appears to be paying off in a volatile market environment. Standard Chartered’s management has emphasized that the strong first-half performance reflects the successful execution of its long-term strategy, particularly in cross-border and affluent banking. The bank has positioned itself to navigate ongoing geopolitical and economic uncertainties by maintaining a disciplined approach to capital allocation and operational efficiency [10].

The decision to launch another major share repurchase program signals confidence in the bank’s ability to sustain strong performance while managing risks in its core markets in Asia, Africa, and the Middle East. Analysts have noted that the move reinforces Standard Chartered’s commitment to rewarding shareholders without compromising its financial flexibility [11].

Source:

[1] Standard Chartered Q2 profit beats expectations, ... (https://finance.yahoo.com/news/standard-chartered-q2-profit-beats-051755334.html)

[2] StanChart Unveils New $1.3 Billion Buyback as Profit Beats (https://news.bloomberglaw.com/international-trade/standard-chartered-announces-fresh-share-buyback-as-profit-beats)

[3] StanChart sets $1.3 billion buyback as first-half profit ... (https://www.reuters.com/business/finance/stanchart-sets-13-billion-buyback-first-half-profit-outstrips-forecasts-2025-07-31/)

[4] Standard Chartered Q2 2025 slides: 48% profit growth ... (https://ng.investing.com/news/company-news/standard-chartered-q2-2025-slides-48-profit-growth-announces-13bn-buyback-93CH-2035344)

[5] Standard Chartered Reports Strong H1 2025 Results with ... (https://www.tipranks.com/news/company-announcements/standard-chartered-reports-strong-h1-2025-results-with-strategic-focus)

[6] StanChart Unveils New $1.3 Billion Buyback as Profit ... (https://www.bloomberg.com/news/articles/2025-07-31/standard-chartered-announces-fresh-share-buyback-as-profit-beats)

[7] StanChart sets US$1.3 billion buyback as first-half profit ... (https://www.businesstimes.com.sg/companies-markets/banking-finance/stanchart-sets-us1-3-billion-buyback-first-half-profit-outstrips-forecasts)