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It’s hard to keep track of every stock on the FTSE 100. I’ve only glanced at Standard Chartered (LSE: STAN) now and then and as it turns out, I’ve missed quite a lot. But can the Asia-focused bank’s remarkable performance continue?
Standard Chartered has soared 98% in the past year, and its shares are up 246% over two years, with dividends on top. It had a stellar 2024, with full-year results, published in February, showing an 18% jump in pre-tax profit to $6bn.
The share price got another boost from last week’s half-year 2025 results, published on 31 July. These revealed a 26% rise in pre-tax profit to $4.38bn, flying past analysts’ forecasts of $3.83bn.
The shares are smashing it
The bank also announced a $1.3bn share buyback and increased its interim dividend by 37% to 12.3 US cents a share. CEO Bill Winters hailed a “strong first-half performance” driven by its focus on cross-border and affluent banking.
Analysts have raised their expectations as a result, with Shore Capital increasing its fair value estimate from 1,270p to 1,355p. That’s actually below today’s share price of 1,383p, which suggests the stock may have run its course for now.
Shore isn’t the only analyst suggesting the stock has gone as far as it can today. The 15 analysts providing one-year price targets have a median forecast of around 1,342p. That implies a small dip of roughly 3% from current levels. These estimates are likely to pre-date the 11% spike over the past month, but confirm my suspicion that the fun may be over for now.
FTSE 100 banks are all flying
I say Standard Chartered is overlooked, but clearly some investors have noticed it. What I really mean is that the big FTSE 100 banks such as Barclays, NatWest Group and Lloyds Banking Group tend to dominate investor attention. For those seeking Asia exposure, HSBC Holdings tends to grab the limelight.
All the major banks have enjoyed a significant re-rating in recent years. I personally hold Lloyds. Although it has lagged slightly, partly due to the motor finance selling scandal, I’m hardly complaining.
For income seekers, HSBC, Lloyds and NatWest offer tempting trailing yields of 5.23%, 4.11% and 4.78%, respectively. Standard Chartered’s yield sits around 2%.
The outlook is positive, but banks carry risks. Standard Chartered’s deep Asia exposure, especially to China, leaves it vulnerable to worsening trade tensions with the US. The Chinese economy faces structural challenges unrelated to geopolitical rivalry, though that hasn’t weighed on Standard Chartered over the last year.
This stock could slow down
Donald Trump’s tariffs could have an impact too, hitting global growth and client activity. On the other hand, UK-focused banks face domestic challenges. No matter where they operate, banks must navigate risks.
Despite a strong run, I believe Standard Chartered remains worth considering for long-term investors who want exposure to the Asia banking market. It still looks decent value, with a price-to-earnings ratio of around 11. So do all the FTSE 100 banks. Yet I suspect that after the bumper sector-wide recovery, things will settle down a little now.