Standard Chartered Earnings: Lifting Lending Margins, Fee Growth After Good Results, FVE Raised

Standard Chartered, like its peers, is benefiting from interest rates staying higher for longer, coupled with strong wealth management activities as risk appetite returns in Asia. We raise our net interest margin, or NIM, assumptions by 2 basis points in 2024, which also carries over to 2025 and factor in stronger growth in noninterest income of 10% in 2024 versus 5% in our original assumption. As a result, our net earnings forecast is increased by 13% in 2024 and 5%-8% thereafter, and our fair value estimate to HKD 89 (GBP 9.12) per share from HKD 84 (GBP 8.30). StanChart remains in 4-star territory.