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StanChart Goes Bullish And Beats Estimated Q1 Profit 

StanChart lost $107 million due to a downgrade of Sri Lanka’s credit rating and $160 million due to its exposure to China’s deteriorating real estate market.

StanChart Goes Bullish And Beats Estimated Q1 Profit 

StanChart (Standard Chartered) reported a 6% increase in first-quarter profit, sending its stock up 10%, as higher inflation-targeted interest rates benefited emerging-markets lenders. While the global economic situation is dimming, the London-based organisation slightly expects wage growth to exceed 5%-7%earlier forecasted this year.

StanChart’s Hong Kong-listed shares surged 10%, matching the market’s 0.6% gain. The bank’s statutory pretax profit climbed to $1.49 billion from $1.4 billion in January-March. The bank’s 16 analysts estimated a $1 billion average. On Thursday, the group’s CEO, Bill Winters, announced that they expect to offer a 10% return on tangible equity by 2024, if not sooner.

StanChart warned that the Ukraine conflict could delay the COVID-19 epidemic’s recovery despite its optimistic earnings forecasts. Due to continued viral restrictions, the bank’s China sector saw an 18% decline in wealth management revenue compared to last year.

StanChart lost $107 million due to a downgrade of Sri Lanka’s credit rating and $160 million due to its exposure to China’s deteriorating real estate market. The bank’s trading section had a 32% revenue gain, with its macro trading unit reporting a record quarter due to volatile energy prices.

Winters has spent the previous four years trying to resurrect the bank’s growth while creating a digital asset portfolio. The company’s stock price has been half during its tenure.

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