JP Morgan: STANCHART (02888) mixed fourth quarter performance, target price of 265 Hong Kong dollars, remains the top preferred stock.

JPMorgan released a research report stating that Standard Chartered (02888) fourth quarter revenue in 2025 roughly meets expectations, with net interest income exceeding expectations, but non-interest income falling short of expectations due to a temporary decline in global market business revenue. Pre-tax profit is 6% below market expectations, as costs are 4% higher than expected. Dividends are 40% higher than market expectations, while the $1.5 billion buyback plan is in line with expectations. The bank says Standard Chartered remains their preferred stock, maintaining a "buy" rating with a target price of 265 Hong Kong dollars. Guidance for 2026 has become the focus of the market, with the group expecting a return on tangible equity (ROTE) above 12%, higher than the market's expected 11.7% and slightly higher than 2025's 11.9%. At the same time, the group anticipates revenue growth for the year to be at the lower end of the 5% to 7% expected range, indicating a 2% increase over market expectations. JP Morgan expects that the group's updated guidance will lead to a single-digit increase in pre-provision profit forecasts for 2026 and believes that the group's ROTE will gradually increase to around 14.5% by 2028.