Standard Chartered raised its performance targets, unveiled a $1 billion share buyback programme, and posted a 28 percent increase in annual profit after higher global interest rates boosted its lending revenue.
The bank said about 10 percent of its overall profit growth came from interest rates, with central banks raising interest rates to combat inflation, allowing banks to charge higher fees to borrowers after nearly a decade of near-zero interest rates.
Standard Chartered, which focuses on Asia, Africa and the Middle East, announced that its latest share buyback program is about to begin.
“We are updating our forecasts and now we are targeting a return on tangible property assets of close to 10% in 2023, to exceed 11% in 2024 and continued growth thereafter,” Bill Winters, the bank’s chief executive, said in a statement on Thursday.
The bank, which reaped most of its profits in Asia, made a pre-tax net profit of $4.3 billion in 2022, which was less than the $4.73 billion average forecast collected by analysts, but was the highest annual profit since 2013.
In a separate context, the bank signed, last week, a memorandum of understanding with the Saudi Ministry of Industry and Mineral Resources, with the aim of contributing to the analysis of the requirements for sustainable investments in the mining sector and mining industries in the Kingdom.
The memorandum provided for encouraging the private sector, locally and internationally, to invest in the mining and minerals sector, by encouraging mining and mineral industries companies to explore available opportunities in accordance with the regulations in force in Saudi Arabia.
The memorandum also aims to support the development of the International Mining Conference, transfer of technology and increase direct foreign investments to Saudi Arabia, in addition to creating training and job opportunities with high skills.
