JPMorgan released a report stating that Standard Chartered (02888.HK) exceeded expectations in terms of third-quarter revenue, costs, and asset quality, with the upward revision of guidance being the major highlight. Its third-quarter pre-tax profit was 16% higher than market expectations, primarily driven by revenue exceeding expectations by 4%, as well as operating costs and impairment charges being lower than expected by 2% and 25% respectively. Standard Chartered also raised its revenue growth guidance for this year from over 7% to approaching 10%, slightly below the market's expectation of just under 8.5%. The 2026 tangible equity return on investment guidance was also adjusted upward by 1 percentage point to 13%, surpassing the market's expectation of 12.4%.

On a less optimistic note, the tier 1 common equity capital ratio for the quarter was 14.2%, slightly lower than the market's expectation of 14.3%, based on market risk on risk-weighted assets. Standard Chartered raised its shareholder return guidance from 2024 to 2026, with the dividend per share increasing from $5 billion to $8 billion, while the market expected $8.4 billion. The group indicated that the current interest rate environment and outlook make next year's net interest income growth more challenging, with market expectations of a 1% decline. The bank sees downward risk in net interest income, as most of the bullish outlook is already reflected in 2024.

The market is expected to revise the EPS forecast for Standard Chartered to a mid-single-digit increase this year. It maintains a 'shareholding' rating on Standard Chartered but believes that HSBC (00005.HK) has a clearer earnings visibility for next year in comparison.