Goldman Sachs: Raised STANCHART (02888) target price to HK$168, outperformed expectations in the last quarter performance.

Goldman Sachs released a research report stating that Standard Chartered (02888)s earnings per share forecasts for 2025 to 2027 have been revised upwards by 3%, 5% and 4% respectively, mainly reflecting the impact of a lowering of the tax rate assumption, while pre-tax profit forecasts remain largely unchanged. The target price for Standard Chartered's Hong Kong stock has been raised by 24% to 168 Hong Kong dollars from 135 Hong Kong dollars, with the rating maintained at neutral. Goldman Sachs stated that Standard Chartereds basic pre-tax profit for the third quarter of 2025 exceeded market expectations by 14%, with basic profit exceeding by 23%, reflecting net interest income 2% better than expected, non-net interest income 4% better than expected, operating expenses 1% better than expected, credit costs 23% better than expected, and tax rate lower than expected by 4 percentage points. The quarterly basic return on equity was 13.4% (market consensus was 10.1%), and the common equity Tier 1 capital ratio was 14.2%. Standard Chartered has raised its full-year 2025 total revenue and return on equity guidance, now expecting revenue growth to trend towards the upper limit of 5% to 7% range (previously close to the lower limit), and expecting a return on equity of around 13% in 2025, with further increases in the future (previously close to 13% in 2026 and beyond).