Standard Chartered: A Re-rating Opportunity Amid Outperforming Earnings and Revenue Growth

Standard Chartered has emerged as a compelling re-rating candidate in 2025, driven by a confluence of outperforming earnings, strategic repositioning in emerging markets, and favorable capital market dynamics. The bank’s Q2 2025 results underscore its ability to capitalize on macroeconomic tailwinds while executing a disciplined capital allocation strategy. With underlying profit before tax surging 34% year-over-year to $2.4 billion and operating income rising 14% to $5.5 billion, Standard Chartered has demonstrated resilience and agility in a volatile global environment [4]. This performance has been underpinned by a strategic pivot toward high-growth segments such as Wealth Solutions, Global Markets, and cross-border banking, which collectively contributed to a 19.7% return on tangible equity—a significant jump from 12.7% in the same period in 2024 [5].

Strategic Repositioning in Emerging Markets

Standard Chartered’s long-standing expertise in emerging markets has become a cornerstone of its 2025 strategy. The bank has leveraged its century-old footprint in Asia, the Middle East, and Africa to deepen its engagement with capital market harmonization initiatives. For instance, its support for Ghana’s Central Securities Depository and its role in facilitating the first electronic trade of Indian government bonds via MarketAxess highlight its commitment to modernizing infrastructure in these regions [1]. These efforts align with broader trends of global capital reallocation, as a weakening U.S. dollar and policy support in Asia ex-Japan equities create fertile ground for non-U.S. asset inflows [3].

The bank’s partnerships further amplify its strategic edge. Collaborations with entities like ALTIOS and Alibaba Group have enabled Standard Chartered to offer tailored cross-border solutions for SMEs and integrate AI-driven innovations into risk management and sustainable finance [6]. Additionally, its $9 billion Kenyan shilling loan with the IFC to support digital infrastructure underscores its focus on local currency lending—a critical lever for financial inclusion and economic resilience in emerging markets [5].

Capital Market Dynamics and Guidance Upgrade

Improved capital market dynamics have amplified Standard Chartered’s growth trajectory. The bank upgraded its 2025 income growth guidance to the lower end of the 5-7% range at constant currency, reflecting confidence in its ability to navigate interest rate fluctuations and regulatory shifts [5]. This optimism is rooted in its non-NII growth, which surged 31% year-on-year to $2.8 billion, driven by robust performances in Wealth Solutions and Global Markets [5].

The bank’s market outlook also highlights strategic positioning in EM local currency bonds and Asia ex-Japan equities, which it views as attractive given the current macroeconomic landscape [2]. Analysts have echoed this sentiment, with Standard Chartered’s Overweight stance on these assets aligning with broader industry trends of capital seeking yield in emerging markets [3].

Third-Party Validations and Analyst Confidence

Standard Chartered’s strategic initiatives have garnered external validation. Its net zero Transition Plan, independently verified by EY, demonstrates a mathematically rigorous approach to decarbonization across 12 high-emitting sectors [3]. Meanwhile, its $1.3 billion share buyback program—part of a $8 billion capital return target through 2026—has been praised for enhancing shareholder value and signaling management’s confidence in long-term profitability [5].

Analyst ratings, though mixed, reflect a cautiously optimistic outlook. With five “buy” ratings and eight “hold” ratings, the stock’s target price range suggests potential for re-rating if the bank continues to outperform expectations [4]. This is further supported by its disciplined cost management under the “Fit for Growth” initiative, which has delivered $500 million in annualized savings and improved operational efficiency [1].

Conclusion

Standard Chartered’s strategic repositioning in emerging markets, coupled with its proactive capital allocation and alignment with favorable capital market dynamics, positions it as a compelling re-rating opportunity. As global investors increasingly seek exposure to high-growth regions and yield-driven assets, the bank’s expertise in cross-border banking, digital innovation, and sustainable finance offers a unique value proposition. With a strong balance sheet, upgraded guidance, and third-party validations reinforcing its credibility, Standard Chartered is well-placed to capitalize on the evolving financial landscape.

Source:
[1] Standard Chartered and ALTIOS announce strategic partnership to support international expansion of SMEs in Asia [https://www.sc.com/en/press-release/standard-chartered-and-altios-announce-strategic-partnership-to-support-international-expansion-of-smes-in-asia/]
[2] Prelude to the next rally – Market Outlook [https://www.sc.com/je/market-outlook/global-market-outlook-25-7-2025]
[3] Inside Standard Chartered's Sustainable Transition Plan [https://sustainabilitymag.com/articles/inside-standard-chartereds-sustainable-transition-plan]
[4] Standard Chartered PLC (STAN.L): Navigating A Global Banking Landscape With Strategic Growth [https://www.directorstalkinterviews.com/standard-chartered-plc-stan-l-navigating-a-global-banking-landscape-with-strategic-growth/4121212346]
[5] Standard Chartered Q2 2025 slides: 48% profit growth [https://www.investing.com/news/company-news/standard-chartered-q2-2025-slides-48-profit-growth-announces-13bn-buyback-93CH-4161700]
[6] Standard Chartered and Alibaba Group Sign Strategic Technology and Growth Partnership [https://www.sc.com/en/press-release/standard-chartered-and-alibaba-group-sign-strategic-technology-and-growth-partnership/]