StanChart restores dividend, buyback but income drop signals challenges ahead

StanChart's profit was boosted by a release of $67 million it had set aside to cover a potential increase in bad loans due to the pandemic.

HONG KONG: Standard Chartered PLC posted a higher than expected 57% jump in first-half pretax profit and announced a $250 million share buyback, with the bank also resuming dividend payments by unveiling a 3 cents per share interim payout.

However, income fell 5%, indicating that StanChart, like larger rival HSBC, faces longer-term challenges once the unlocking of bad loan provisions stops boosting profits, as low interest rates and fierce competition squeeze revenues.