StanChart unveils $1.9 billion share buyback amid profit miss
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Rally in the bank's shares fizzled last week after the shock news of its CFO departure.
PHOTO: REUTERS
LONDON – Standard Chartered announced a fresh US$1.5 billion (S$1.9 billion) share buyback as it reported weaker-than-estimated fourth-quarter earnings, weeks after its share price was hit by a surprise departure of its chief financial officer (CFO).
The lender reported US$1.24 billion in adjusted pretax profit for the final three months of 2025, falling short of the US$1.38 billion Bloomberg-compiled consensus estimate.
While the bank’s wealth management and global banking units showed resilience, performance was dragged down by lacklustre trading income and a US$233 million charge linked to its “Fit for Growth” efficiency initiative. The lender also dialed back the scope of the programme, now seeing US$1.3 billion in savings, down from US$1.5 billion earlier.
“This year, we and our clients confronted a global economy and international system at what felt like an inflection point,” chief executive officer Bill Winters said in a statement. “Our strategy is designed to enable us to endure change.”
The bank guided for 2026 returns to be more than 12 per cent and income growth to be at the bottom end of a 5-7 per cent range. It had previously expected growth at the upper end of the range. It also said net interest income is likely to be broadly flat in 2026.
The buyback comes at a critical juncture for Mr Winters. After Standard Chartered shares surged more than 80 per cent in 2025, the rally unravelled in February. Investors were caught off guard on Feb 10 by the immediate departure of CFO Diego De Giorgi, who left the firm to join Apollo Global Management.
Mr De Giorgi had only been with the bank for two years. But during that period, he developed a reputation as an effective operator spearheading its “Fit for Growth” programme that’s involved several hundred initiatives aimed at saving anything from hundreds of thousands to tens of millions of dollars.
That saw him become the front-runner inside the bank to replace Mr Winters, who will this year mark his 11th year as CEO. The stock tumbled almost 10 per cent in the days after the announcement of De Giorgi’s departure before recouping some of those losses since.
“Fit for Growth” is now in its final year of delivery and the bank will host a capital markets event in May for the next phase of growth. BLOOMBERG
