Standard Chartered reported that first-half net profit increased 41% to US$3.07 billion on Thursday. It cites that affluent wealth management was the growth engine. Hong Kong plays a significant role in its expansion plan.
Standard Chartered, one of the three note-issuing banks in Hong Kong, will launch a digital platform this month for tech-savvy young investors to attract wealthy customers.
Mary Huen Wai-yi, the bank’s chief executive officer (CEO) for Hong Kong, Greater China, and North Asia, stated that the platform would allow investors to conduct investment research and trade a range of products, including stocks, funds, and other alternative assets.
Historically, many wealthy customers prefer to talk to bankers or relationship managers about investing. However, Huen noted that the new generation of investors would favour trading on a digital platform by themselves.
He claims that for this reason, he thinks a new digital platform will help to attract a fresh group of premium and mass customers who have the potential to use their private banking services in the future.
Group Chief Executive Officer Bill Winters stated that the new platform was part of the lender’s planned US$1.5 billion investment in the wealth management industry over the next five years, with Hong Kong as the focus of the expansion.
This year, the lender will also open its sixth wealth management centre in Hong Kong, after opening two such centres in Taiwan and three on the mainland in recent years. According to Huen, the lender has been successful in attracting wealthy customers to form long-term relationships with the bank.
Standard Chartered reported first-half net profit increased 41% to US$3.07 billion on Thursday. It cites that affluent wealth management was the growth engine.
Hong Kong plays a significant role in Standard Chartered’s expansion plan. Hong Kong has the largest market for lenders after the city’s underlying pre-tax profit for the first half jumped by 39% to a record of US$1.45 billion, or 30% of the total.
According to Huen, the number of wealthy customers who had more than HK$200,000 (US$25,477) deposited with the bank increased by 8% in the first half, with their net new money increasing by 35%.
Huen stated that banks’ interest income would be impacted by the low Hong Kong interbank rate, with the one-month Hibor below 1% and the anticipated second-half United States interest rate cut.
She stated that the impact of the low interest rate could be offset by increased fee revenue in the other half.
The equity market has recovered, with the Hang Seng Index increasing more than 20% in 2025 last year, which encouraged more investor activity.
She added that better sentiments help company clients feel more at ease to take out loans to expand.
The Hong Kong branch of Standard Chartered saw a 79% increase in credit impairment to US$168 million, which includes US$58 million for the city’s commercial real estate.
Huen stated that its lending for commercial real estate accounted for US$2.1 billion, representing just 2% of its US$86.6 billion loan portfolio in Hong Kong.
She affirms that there is no need for concern as they have little exposure to commercial real estate, with most loans in excellent shape.
Huen went on to say that Standard Chartered will continue to support its Hong Kong corporate clients in operating cross-border trade and expand overseas. In the upcoming months, its bankers will take their clients to explore new opportunities in the Middle East and Southeast Asian markets.
According to Huen, many Hong Kong customers wish to establish product plants in other Asian cities or set up product markets in those cities, due to the threat of high US tariffs imposed by President Donald Trump.