Much has been said about ballooning profits for banks in the UK and Europe.
In an era of higher interest rates, many banks have become more profitable. They’ve achieved this because savers are paying more interest, but also because they haven’t passed on interest rate rises to customers with savings accounts.
But one UK bank stands out with a slightly different story: Standard Chartered.
This global bank is listed in London, but most of its profits come from Asia. Its “non-interest” income was up 21% in the fourth quarter of 2024, led by a 36% increase in its wealth solutions business.
Over the past 12 months, its share price has jumped 78%. According to Morningstar analysis, Standard Chartered is just about fairly valued: at the time of recording, it is trading marginally below its fair value estimate of £11.70.
Michael Makdad, equity research analyst at Morningstar, argues momentum in its wealth solutions arm will continue. However, 2025 may turn out being a challenging year for the company to navigate – as it deals with the impact of heightened US-China tensions, and the end to the profit boon as interest rates are cut globally.
Standard Chartered’s dividend yield is 2.08%, and its interim dividend for 2024 was around 7p. Standard Chartered’s total dividend in 2023 was 21 pence.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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