Standard Chartered launches £1.2bn share buyback after profits rise

Standard Chartered is launching its biggest-ever share buyback following a surge in profits.

The British lender will return 1.2 billion pounds to investors after reporting a strong first half of the year, with profits rising 21 percent to 3.1 billion pounds in the six months to the end of June.

Meanwhile, chief executive Bill Winters praised Labour for being a “serious government” and “supportive of business”.

“They have put forward serious statements and platforms,” ​​he said, despite the looming tax increases.

He added: “I have every confidence that the Chancellor (Rachel Reeves) and the rest of the Government will carry out their policies in a transparent manner.”

The City speculated that the bank was seeking to win the confidence of Labour, who are likely to tax share buybacks.

Russ Mould, investment director at AJ Bell, said: “It would be unusual, even negligent, for a chief executive not to try to influence thinking and policy, especially in an industry that remains under as much regulatory and public scrutiny as banks.”

Share rose 5.9 percent, or 43.2 pence, to 770 pence, taking its annual gain to 16 percent.

The bank attributed its strong first-half performance to the growth of its wealth management business, which brought in billions of dollars from wealthy clients.

That helped revenue rise 13 per cent to £8 billion over the period, leading to its annual forecast being updated to more than 7 per cent by 2024.