HONG KONG: Standard Chartered raised key performance targets as quarterly profit beat market forecasts and said it would double down on its wealth business while cutting back on retail banking to further boost returns.

StanChart reported third-quarter pre-tax profit of US$1.72 billion, above the average analyst estimate of US$1.49 billion and more than double the US$633 million a year ago, when it was hit by nearly US$1 billion from its exposure to China. he said.

The bank said Wednesday that revenue this year will now grow around 10 percent, up from a previous forecast of 7 percent. The lender also said it plans to return at least $8 billion to shareholders from $5 billion to $8 billion from 2024-2026.

The improved performance comes as StanChart, like rival HSBC, continues to extensively restructure its business to focus more on wealthy retail customers and large cross-border businesses that are likely to generate more fees for the bank.

StanChart said it would double its investment in its wealth business by investing $1.5 billion over five years in relationship managers and investment advisors.

This will be financed by further cuts to its mass retail business, following HSBC in recent years cutting its retail banking operations in Western markets such as the US, Canada and France to focus on more lucrative areas.

StanChart said it is exploring the opportunity to sell “all or part of a small number of businesses” that no longer make strategic sense.

Unlike HSBC, the London-based bank did not announce any new share buybacks for the quarter.

StanChart’s shares rose 3.3 per cent in Hong Kong following the results, joining its European peers making solid progress in maintaining profits even as rates fell.

The lender’s London shares have risen 31 per cent this year, outpacing HSBC’s, which is up 15 per cent. HSBC reported on Tuesday that quarterly profits rose 10 percent year-on-year.

DOUBLE DECREASE IN ASSET DEALINGS

Revenue from StanChart’s asset solutions unit rose 32 percent to $694 million; This recorded the highest growth rate among its core businesses and justified the bank’s heavy investment in targeting affluent customers.

The lender selectively exits asset markets that do not fit its strategy. In India, it is outsourcing its personal loan business to local peer Kotak Mahindra Bank.

StanChart will continue to “reshape” its mass retail business to focus on future affluent and international customers, group chief executive Bill Winters said in a statement.

The global markets business grew 16 percent from a year ago to $840 million in the July-September period (the second-largest growth in any of its core businesses).

Unable to compete with Wall Street and European investment banking rivals on large transactions, the London-based bank has launched a restructuring of its corporate and investment banking (CIB) in recent months to improve its competitiveness.

“In our CIB business, we are moving to focus on larger global clients who rely on our unique cross-border capabilities,” Winters said.

StanChart launched a new banking team within its CIB division last month, aiming to boost cross-border trade, Reuters reported. The bank also added its industry coverage team to its dedicated mergers and acquisitions advisory team in August.