Shares in Standard Chartered have seen a slight increase after the company significantly exceeded profit expectations for the first quarter, despite cautioning about the potential impact of geopolitical tensions.
The bank's shares rose nearly one per cent during early trading on Friday, as reported by .
The FTSE 100 lender reported a pre-tax profit of $2.1bn (£1.6bn), an increase from $1.9bn during the same period last year.
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This was largely due to a 28 per cent rise in operating income from its wealth management division and a 17 per cent growth in global banking compared with the first quarter of 2024.
The growth occurred during a period of market volatility triggered by President Donald Trump's aggressive rhetoric, which sparked fears of a recession and led to a series of market sell-offs.
Standard Chartered's global markets revenue increased by 14 per cent, with total income reaching $5.4bn – a 12 per cent rise.
Meanwhile, net interest income grew seven per cent to $2.8bn.
Standard Chartered increased provisions after tariff turmoil
Trump's broad tariffs on trading partners, announced during his 'Liberation Day' speech, narrowly missed the first quarter reporting period.
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As global tensions escalated, Standard Chartered, with its focus on Asia, was particularly affected by the high tariffs imposed on the region.
The bank's stock fell over 20 per cent in five days as China retaliated with tariffs on the US.
The firm disclosed a $219 million credit impairment charge, marking a 24 percent surge from the previous year, primarily derived from its wealth and retail division.
The bank has cited the need for additional provisions due to "an increased probability weighting for the global trade and geopolitical trade tensions scenario given the heightened uncertainty around trade tariffs."
Bill Withers, the chief executive, noted: "The subsequent imposition of trade tariffs has increased global economic and geopolitical complexity, and we remain watchful of the external environment."
He continued by expressing confidence despite uncertainties: "But our ability to help clients manage their business and wealth across borders in times of volatility reinforces our confidence that we can continue to improve returns."
Withers went on to highlight the company's strategic market presence: "Our presence in structurally high-growth markets across Asia, Africa and the Middle East is key to driving long-term sustainable value for our shareholders, and we remain focused on reinforcing these competitive advantages to drive future growth."