StanChart shares hit near decade peak after profit rise, $1.5 bln buyback
Standard Chartered's strong profit growth and increased share buyback have led to its Hong Kong-listed shares reaching a near-decade high of HK$116, driven by record growth in its wealth business and markets division. The bank's CEO Bill Winters has stated that the company is uniquely positioned to take advantage of growing footprints across Asia, Africa, and the Middle East, where growth is expected to outpace global growth. As a result, StanChart is doubling down on its mainstay wealth management and markets business, investing $1.5 billion over five years in various areas.
- The success of StanChart's focus on wealth management and markets could serve as a model for other international banks looking to adapt to an uncertain global growth outlook and declining interest income.
- How will the increasing competition from local players in retail banking impact StanChart's strategy of retreating from areas where it lacks scale?