STANCHART (02888) recorded a record-breaking 9% growth in operating income in the first quarter, reaching 5.9 billion US dollars.

STANCHART (02888) released its first quarter performance for 2026, with operating income breaking a record growth of 9% to $5.9 billion, driven by strong performances in the wealth scheme business and global banking business. Operating expenses increased by 1% annually, with rigorous cost management allowing the company to achieve an 8% increase in net income compared to cost growth. Credit impairment charges amounted to $296 million, with an annualized loan loss rate of 32 basis points, including an additional provision of $190 million in response to uncertainties in the Middle East conflict. As a result, the pre-tax underlying profit reached $2.5 billion, up 17%, with earnings per share increasing by 31% to 74 cents, benefiting from a decrease in the number of shares and improved profitability. The group maintained sufficient capital and high liquidity, with a well-diversified and robust deposit base. The common equity Tier 1 capital ratio was 13.4%, still within the target range of 13% to 14%. The liquidity coverage ratio was 151%, reflecting prudent asset and liability management. Adjusted net interest income increased by 1%, attributed to higher trading volumes and the benefits of debt portfolio optimization partially offset by lower interest rates and pressure on margin profits. Adjusted non-interest income increased by 16%. Strong growth in wealth scheme business income was driven by frequent client activity across multiple asset categories in investment products, as well as net inflows of accumulated funds from new affluent clients. With high loan volume and frequent capital market activity, the global banking business delivered a strong performance.