JPMorgan: STANCHART (02888) Q3 Results Far Exceed Expectations, with Strong Core Profit Growth and Low Impairments

JPMorgan released a research report stating that STANCHART (02888) Q3 results significantly beat expectations, with strong core profit growth and low impairments. During the period, revenue, pre-provision operating profit, and profit before tax were 4%, 7%, and 13% above market expectations respectively, with all business lines showing comprehensively strong performance; the bank reiterates its "Overweight" rating on STANCHART with an unchanged target price of HK$310. The bank noted that net interest income was 2% above market expectations, up 8% year-on-year and 3% quarter-on-quarter, benefiting from volume growth and broadly stable net interest margin quarter-on-quarter. The group raised its FY2026 net interest income growth guidance to approximately 4%, above market expectations of about 3%. Wealth management revenue grew 26% year-on-year, 8% above market expectations; impairment provisions were US$90 million, 59% below market expectations. Hong Kong business revenue grew 25% year-on-year, with pre-provision operating profit up 50% year-on-year. The bank expects low single-digit percentage point upgrades to FY2026 earnings per share forecasts following the Q3 results.