Core Viewpoint - The resignation of CFO Diego De Giorgi is a personal decision for career development, and it will not affect the fundamental, financial guidance, or strategic direction of Standard Chartered Group. The market should not overreact, and any irrational short-term fluctuations present a buying opportunity. The company is expected to maintain strong performance through 2025, with ROTE projected to rise to around 13% [1][4]. Event - On February 10, Standard Chartered Group announced that CFO Diego De Giorgi decided to accept an external job opportunity, resigning from his position as Executive Director and Group Chief Financial Officer. Peter Burrill, the current Group Central Financial Officer and Deputy CFO, will serve as interim CFO [1]. Analysis - The departure of the CFO is viewed as a normal career move, and the company's fundamentals, financial guidance, and strategic direction remain unchanged. Diego's resignation, after only two years in the role, is not expected to have a significant impact on Standard Chartered. The company's financial framework and strategic goals are set by the board, with CEO Bill Winters as the key leader [1][3]. Performance Expectations - Standard Chartered is expected to achieve strong performance in 2025, with ROTE projected to increase to around 13%. The net interest income is anticipated to outperform expectations, supported by favorable conditions such as the expected interest rate cuts by the Federal Reserve and a rebound in Hong Kong's Hibor to around 3%. Non-interest income is also expected to grow significantly, driven by wealth management and transaction banking [2][4]. Long-term Outlook - The company is likely to maintain a positive performance outlook, with ROTE targets gradually approaching around 15%. The completion of previous financial goals for 2023-2026 will lead to new targets being set for 2026 and beyond. The bank is positioned to benefit from the rebalancing of international supply chains and the growing demand for global asset allocation among affluent clients [3][4]. Revenue Growth Projections - Revenue growth rates for 2025-2027 are projected at 6.8%, 5.5%, and 5.5%, respectively. Pre-tax net profit growth rates are expected to be 17.4%, 7.9%, and 11.3%. ROTE is forecasted to be 13.4%, 13.9%, and 14.8% for the same period. The current valuation stands at 1.1 times the 2026 P/B ratio, with a combined return rate from dividends and buybacks estimated at 7.1% [4].

Core Viewpoint - Standard Chartered Group's Q3 2025 revenue and profit exceeded expectations, with a return on tangible equity (ROT E) maintaining an upward trend year-on-year. The decline in net interest margin has narrowed, and both Global Banking and Wealth Management achieved strong growth of over 20% [1][12]. Revenue Performance - Q3 2025 adjusted operating income reached $5.15 billion, a year-on-year increase of 5%, surpassing market consensus by 3% [2]. - The improvement in net interest income was supported by a narrowing decline in net interest margin, with non-interest income growing robustly, particularly in Wealth Management and Global Banking, which saw increases of 28% and 24% respectively [2][5]. Profitability - Adjusted pre-tax profit for Q3 2025 was $1.985 billion, reflecting a year-on-year growth of 10%, exceeding market expectations by 14% [3]. - The ROT E for the first nine months of 2025 was 16.5%, up 3.6 percentage points year-on-year, with the target of 13% ROT E expected to be achieved ahead of schedule [3][4]. Future Outlook - The company has raised its full-year revenue guidance to around 7%, with expectations for continued growth in ROT E [4][12]. - The long-term revenue CAGR guidance for 2023-2026 is set at 5%-7%, with non-interest income expected to contribute significantly due to strong trends in Global Transaction Banking and Wealth Management [4][12]. Credit Quality - The credit cost ratio remained low at 0.27%, below the long-term guidance of 30-35 basis points, supported by minimal exposure to Hong Kong commercial real estate and private credit [3][11]. - The non-performing loan ratio decreased to 1.93%, with a provision coverage ratio of 80.8% [6][11]. Wealth Management Growth - Wealth Management business saw a robust year-on-year growth of 28% in Q3 2025, driven by an increase in affluent client numbers and strong asset under management (AUM) inflows [7][12]. - The number of new affluent clients increased by 67,000 in Q3 2025, with total AUM reaching $438 billion, reflecting a quarterly growth of 4% [7][12]. Cost Management - Operating expenses grew by 4% year-on-year, while the cost-to-income ratio improved to 55.6%, down 2 percentage points year-on-year [3][4]. - The company is implementing cost control measures, with a target for operating costs to be below $12.3 billion by 2026 [4][12]. Investment Recommendation - Based on the strong performance and positive outlook, the target price has been raised to HKD 182, maintaining a buy rating and positioning Standard Chartered as a top pick in the banking sector [12][13].