A record income of $19.7bnbin( £15.6bn) was fuelled by heightened activity within its wealth division, catering to high-net-worth clients
Standard Chartered has seen a nearly 20% surge in its annual profit, thanks to robust activity in international markets and its wealth division.
This performance has led to a near 50% pay rise for the bank’s chief. The UK-based bank, which primarily operates in Asia, the Middle East and Africa, managed to achieve this financial boost despite global “disruption” and looming tariff threats. It posted a pre-tax profit of $6bn US (£4.7bn) for 2024, marking an 18% increase from the previous year’s $5.1bn (£4 bn).
A record income of $19.7bnbin( £15.6bn) was fuelled by heightened activity within its wealth division, catering to high-net-worth clients, and growth in its global markets and banking businesses. The bank highlighted its strategic focus on high-growth markets and affluent, international banking customers.
It had previously hinted at potentially offloading some of its banking operations in parts of Africa. Jose Vinals, Standard Chartered’s chairman, attributed the improved financial performance to the bank’s resilience amidst a year of significant changes and “disruption”, with numerous countries electing new leaders in 2024.
Looking forward, CEO Bill Winters suggested that “looser financial conditions and expansionary fiscal policy may be partly offset by protectionist trade policies and interest rates that remain high”. US President Donald Trump’s threat to ramp up tariffs on imported goods, including a proposed tax hike on steel imports, has been met with concern. Standard Chartered is currently identifying which of its clients could be hit by this new wave of tariffs.
In other news, the bank’s annual report disclosed that CEO Mr Winters pocketed £10.7m last year, comprising his salary and benefits, annual bonus, and long-term incentives. This marked a 46% increase from his earnings the previous year, boosted by the company’s robust financial performance and a surge in share price.
However, Standard Chartered plans to slash the salaries of its executive directors significantly this year, proposing a 40% cut for Mr Winters. Despite this, he stands to earn up to £13.1m based on his performance against set targets.
This move mirrors similar changes announced by Barclays and HSBC, who are also seeking shareholder approval for new pay deals aimed at tying directors’ remuneration more closely to their performance.
