Standard Chartered Plc (STAN.L): 2Q26 - Beat on Wealth (Again) vs Smaller Upgrade to FY26 Targets Than Anticipated

Research evidence excerpt

Standard Chartered Plc (STAN.L): 2Q26 - Beat on Wealth (Again) vs Smaller Upgrade to FY26 Targets Than Anticipated

Standard Chartered PLc (STAN.L)

29 July 2026 Citi Research

NII Slightly Ahead — Underlying NII of $2.9bn is flat qoq and 1% better than

consensus. Key NII drivers include higher day count (+$32m), volume growth

(+$29m), and favorable asset mix change (+$30m), which were offset by lower rates

(-$37m) and WRB portfolio actions. Structural hedge notional increases $10bn hoh

to $97bn with average yield of 3.4%.

Non-NII Beat on Wealth — Underlying non-NII of$2.8bn is flat yoy and 5% above

consensus. The beat mainly came from wealth with wealth solution revenue +43%

yoy ccy. Investment product is +56% yoy ccy and bancassurance revenue is +9% yoy

ccy. NNM is $15bn and affluent AuM is +7% qoq in 2Q26. The pace of customer

onboarding remains unchanged through the quarter. Markets revenue is -5% yoy ccy

as episodic income is -47% yoy against a high base, but flow income growth remains

strong (+16% yoy).

Costs Beat on One-Off Provision Release — Statutory cost of $3.2bn is flat yoy at

ccy and 2% better than consensus, helped by a $74m provision release on Korea ELS

portfolio and as FFG savings offset business investment and inflation. 2Q26 FFG

CTA is $128m and $0.6bn is still expected for FY26.

Lower Impairments Better — Provisions of $150m,or 20bps loan loss charge, are

37% lighter (or better) than consensus, even with $44m of additional management

overlays for the Middle East conflict (petrochemical sector and potential sovereign

downgrades). Middle East portfolio is 6% of Group exposure o/w more than 90% is

in CIB (~80% investment grade), while WRB exposure is 85% UAE. NPL ratio

decreased 0.1ppt qoq to 1.9% ($5.7bn), but early alerts are +$0.8bn (to $5.8bn),