(Alliance News) - Standard Chartered PLC on Thursday affirmed its annual financial guidance for 2024, reporting a strong start to the year.

The London-based, Asia-focused bank reported operating income of USD5.13 billion in the first quarter, a 13% increase from USD4.56 billion. Net interest margin increased to 1.76% from 1.63%, outperforming company-compiled consensus expectations of 1.74%.

Pretax profit rose 5.9% to USD1.91 billion from USD1.81 billion, beating the company-compiled market consensus of USD1.39 billion.

StanChart recorded an underlying credit impairment charge of USD176 million during the quarter, compared to USD26 million a year before. The charge was mostly within its Wealth & Retail Banking.

"We delivered a strong set of results in the first quarter of 2024, with double-digit growth in income and positive operational leverage. Business performance was strong and broad-based across our segments, products and markets in what continues to be an uncertain environment," said Chief Executive Officer Bill Winters.

The firm reaffirmed its previous guidance for 2024 as a whole.

In February, it had guided for operating income to increase between 5% and 7% in the period from 2024 to 2026, and around the top of this range in 2024. Net interest income for 2024 is forecast to be between USD10 and USD10.25 billion at constant currency.

It plans to return "at least" USD5 billion to shareholders over 2024 to 2026, with its RoTE, or return on tangible equity, to "increase steadily" from 10% towards a 12% target by 2026.

By Elizabeth Winter, Alliance News senior correspondent

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