Standard Chartered is launching its largest ever share buyback following a surge in profits.
The British lender will return £1.2billion to investors after it reported a strong first half of the year as profits soared 21 per cent to £3.1billion 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’.
Growth: Standard Chartered will return £1.2bn to investors after it reported a strong first half of the year as profits soared 21% to £3.1bn in the six months to the end of June
‘They’ve set out serious statements and platforms,’ he said, despite looming tax rises.
He added: ‘I have every confidence that the Chancellor [Rachel Reeves] and the rest of the Government will pursue their policies in a transparent way.’
The City speculated whether the bank was looking to schmooze Labour, who are likely to tax share buybacks.
Russ Mould, investment director at AJ Bell, said: ‘It would be unusual, even remiss, for a chief executive not to try and influence thinking and policy, especially in an industry that remains under such regulatory and public scrutiny as the banks.’
Shares rose 5.9 per cent, or 43.2p, to 770p taking its gains for the year to 16 per cent.
The bank attributed its strong first-half performance to growth in its wealth management business that brought in billions of dollars from rich clients.
That helped income rise 13 per cent to £8billion during the period, leading to its annual forecast being upgraded to above 7 per cent for 2024.
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