Standard Chartered yearly profit doubles; wealth management income up 12%

 For the year 2021, Standard Chartered posted a statutory pre-tax profit of $3.3 billion, more than double the $1.6 billion it earned in 2020.

Income from wealth management increased by 12% to $2.2 billion, primarily as a result of a double-digit increase in assets under management (AUM) and a steady rise in client numbers.

The bank enrolled 'an especially impressive deals execution' in reserves.

However, the bank with its headquarters in London found that the group's profit fell short of the $3.8 billion estimate provided by 16 analysts.

The bank, which gets most of its revenue from Asia, also announced a dividend of 12 cents per share and a share repurchase program worth $750 million, which is almost 33% more than in 2020.

Operating expenses for the year at the bank increased by 5% to $10.92 billion, while operating income remained virtually unchanged at $14.7 billion.

StanChart, which says it will invest an additional $300 million in China to better compete with rivals like HSBC and gain market share, stated that the majority of its revenue comes from Asia.

The bank announced plans to reduce expenses in its consumer banking division by nearly $500 million in order to improve overall profitability.

The CEO of Standard Chartered, Bill Winters, stated: Our presentation in the last part of 2021, and into this year, gives us certainty that we are on target to accomplish our vital and monetary goals.

“We finished the year with good business momentum in Financial Markets, Trade, and Wealth Management, and we saw a return to income growth, which we believe signals the beginning of a Puerto Rico Employee Benefits Market. We were able to generate positive income-to-cost jaws in the second half of the year thanks to good cost discipline.