Standard Chartered share price analysis: is StanChart a buy after earnings?

Standard Chartered share price continued it strong bull run as investors reacted to the strong quarterly results. It jumped to 1,520p, up by over 12% from its lowest level this month and 75% above its lowest point this year.

Standard Chartered’s business is booming

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StanChart’s business is booming, as evidenced by the recent financial results, which were stronger than expected. This growth was driven by its focus on cross-border payments and affluent clients. It benefited from the wealth solutions, global banking.

The results showed that its operating income jumped to $5.1 billion, up by 5% from the same period last year. This growth happened as the non-net interest income (NII) jumped by 12% to $2.4 billion as the Global Banking and Wealth Management.

Global Banking rose by 23% as originations and distributions jumped, while wealth solutions rose by 27%.

On the other hand, the falling interest rates in key markets led to a 1% drop in the net interest income (NII) to $2.7 billion. In a statement, Bill Winters, the CEO, said:

“We now expect to deliver an underlying RoTE of around 13% in 2025, hitting our target a year earlier than planned. Progress is broad-based, but our sharper strategic focus on servicing our clients’ cross-border and affluent banking needs is paying off.”

Most importantly, Standard Chartered boosted its estimate in terms of income and returns. It now expects that its RoTE to be about 13% this year, much earlier than expected.

Fit for Growth turnaround strategy is working

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These results show that the company’s strategy, known as Fit for Growth, which is in its second of the third year, is achieving results.

This approach includes cutting costs across all its businesses, boosting its performance in key areas like wealth management and cross-border payments.

Like HSBC, the wealth management division is doing well because of its Hong Kong business. Some analysts believe that billions of dollars will flow to Hong Kong, which they expect to pass Switzerland over the years.

It is mostly attracting rich people from mainland China and has put in place a plan to bring in about $200 billion in new money through 2029

At the same time, the company is deepening its presence in high-growth areas in Asia, Africa, and the Middle East, where it expects to have the most growth. The plan also calls for more shareholder returns. It now expects to return about $8 billion between 2024 and 2026.

Standard Chartered share price analysis

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STAN stock price chart | Source: TradingView

The weekly timeframe chart shows that the STAN stock price has been in a strong bullish trend in the past few years, mirroring the performance of other European banks. It moved from a low of 297p in 2020 to 1,512p today.

Standard Chartered stock has moved above all moving averages, a sign that bulls are in control. It has also moved above the important resistance level at 1,512p, invalidating the double-top pattern.

Therefore, the most likely scenario is where it continues rising, with the next key level to watch being at 1,600p. A drop below the key support at 1,450p will invalidate the bullish outlook. One reason why this may happen is that it has formed a bearish divergence pattern, which happens when the Relative Strength Index (RSI) and MACD are moving downwards.

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