StanChart H1 pretax profit beats estimate, reaches $2.61 billion

Bloomberg

US-China trade tensions didn’t stop Standard Chartered Plc from delivering results that beat expectations.
Adjusted pretax profit was $2.61 billion in the first half, the bank reported, higher than the company-compiled $2.50 billion estimate. Standard Chartered said it remains confident
of a full-year return on tangible equity greater than 10 percent in 2021.
“Trade protectionism is bad for the global economy, and fears concerning this matter continue to affect sentiment across global markets and on the ground in many of our locations,” Chairman Jose Vinals said in a statement. “However, we stand to benefit over time as China continues to open and places more emphasis on trade corridors radiating through Asia and connecting it with our markets in Africa and the Middle East.”
Standard Chartered’s Hong Kong-listed shares have risen about 9 percent this year, while its London-listed stock is up about 12 percent. The bank’s performance has been boosted by a $1 billion stock buyback program announced in April, and about $740 million of this is complete, the bank said. Expectations are growing that the lender could announce a further $1 billion repurchase next year.
Return on tangible equity rose 88 basis points to 8.4 percent in the first half of 2019. Underlying revenue $7.7 billion in the first half, compared with $7.6 billion a year ago. A consensus analyst estimate provided by the bank predicted revenue of $7.67 billion. Underlying revenue up 0.6 percent from a year earlier; underlying costs down 2.9 percent. Income-to-cost jaws, a closely watched metric, was a positive 4 percent. Bank said costs in the second half to be “slightly higher” than first half.