Standard Chartered's Wealth Management Surge Drives Profit Growth

Standard Chartered, the London-based multinational banking and financial services company, has reported a significant 19% increase in annual profit, driven by record gains in its wealth management division. The bank's strong performance in 2024 was bolstered by robust growth in its wealth business and a solid showing from its markets division.

The bank's pretax profit for 2024 reached $6 billion, up from $5.1 billion the previous year. While this figure fell slightly short of analysts' expectations, which averaged $6.2 billion, it nonetheless marked a substantial improvement over the previous year. As part of its shareholder returns strategy, Standard Chartered declared a final interim dividend of 28 cents per share. Additionally, the bank revised its 2026 return on tangible equity (RoTE) target to "approaching 13%" from the previous estimate of 12%, signaling confidence in its future profitability.

Standard Chartered's wealth management division played a pivotal role in driving the bank's profit growth. The bank acquired 265,000 new wealthy clients in 2024, who brought in $44 billion of new money, a 61% increase from the previous year. This surge in new clients and assets under management reflects the bank's success in attracting and retaining high-net-worth individuals.

The bank's wealth management division has benefited from several strategic initiatives, including:

1. Expansion in footprint markets: Standard Chartered is uniquely positioned to take advantage of growth in its footprint markets across Asia, Africa, and the Middle East, which are expected to outpace global growth. This expansion has allowed the bank to acquire new wealthy clients and increase its assets under management.
2. Investment in wealth and digital platforms: The bank has committed to investing $1.5 billion over five years in wealth and digital platforms, client centers, people, and brand and marketing. This investment is aimed at accelerating income growth and returns, and it has contributed to the bank's ability to outperform the market in terms of asset gathering and income growth.
3. Product innovation and digital solutions: The bank has been advancing its wealth capabilities through product innovation and digital solutions, such as the "myWealth Advisor" platform and Signature CIO Funds. These innovations have helped the bank meet evolving client needs and attract new clients.

Standard Chartered's focus on wealth management and markets division has enabled it to achieve significant growth and profitability, as evidenced by its 19% annual profit increase in 2024. The bank's investment in these areas, coupled with its ambitious targets, positions it well for continued success in the long term. As the global economy continues to grow and wealth inequality increases, there is a rising demand for wealth management services. Standard Chartered's strong performance in this area suggests that it is well-positioned to capitalize on this growing demand and maintain its competitive edge in the global banking landscape.