Standard Chartered PLC on Wednesday hailed its resilience in an uncertain backdrop, upping annual guidance on strong quarterly results, which were bolstered by rising interest rates.

For the three months ended March 31, the London-based, Asia-focused bank reported pretax profit of $1.81 billion, up 21% from $1.49 billion year-on-year.

Operating income climbed 6.2% to $4.56 billion from $4.29 billion. This was helped by net interest income rising 13% year-on-year to $2.01 billion from $1.78 billion, as it benefitted from rising interest rates.

Basic earnings per ordinary share increased to 40.7 cents from 34.6 cents the previous year.

As at March 31, its common equity tier 1 capital stood at $34.40 billion, up 0.7% from $34.16 billion at the end of December, but down 5.2% from $36.30 billion a year prior. The CET1 capital ratio was 13.7% at March 31, down from 14.0% at the end of December, and falling from 13.9% a year prior.

‘Business performance continues to improve across our markets and products and has been achieved in what continues to be an uncertain environment. We remain highly liquid and strongly capitalised with a CET1 ratio towards the top of our target range’, said Chief Executive Bill Winters.

Winters added: ‘We remain optimistic about our continued strong performance and now expect 2023 income to grow around 10%, the top end of our range, and remain confident in the delivery of all of our financial targets, including our return on tangible equity targets.’

Standard Chartered had previously guided for income to grow between 8% to 10% at constant currency in 2023. It also expects growth of 8% to 10% for 2024. It plans to operate ‘dynamically’ within the full 13% to 14% CET1 target range.

In addition, the company said it plans to return ‘in excess’ of $5 billion to shareholders by 2024.

Standard Chartered shares were trading 0.1% higher at 621.00 pence each in London on Wednesday morning. It has a market capitalisation of £17.60 billion, roughly $21.95 billion.

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