UBS: Standard Chartered (02888) first quarter performance exceeds expectations, target price raised to 227.4 Hong Kong dollars.

UBS released a research report stating that it has raised STANCHART's earnings per share forecast for 2026 to 2028 by 2% to 3%, and the target price has been raised from 221.9 Hong Kong dollars to 227.4 Hong Kong dollars, maintaining a "buy" rating. The bank believes that the market is undervaluing the long-term growth of the wealth business and the potential for tangible return on equity. STANCHART's first quarter pre-provision operating profit and pre-tax operating profit were 13% and 14% higher than market expectations respectively, with a year-on-year increase of 17% and 18%, outperforming expectations. Global banking business revenue exceeded expectations by 12%, with a year-on-year increase of 21%; wealth solutions business revenue exceeded expectations by 13%, with a year-on-year increase of 34%. Net interest income exceeded expectations by 3%, and non-interest income exceeded expectations by 8%.