Image source: Getty Images
Banking stocks have done well so far in 2026. One of the most popular shares for retail investors is Lloyds Banking Group. However, other FTSE banks have gone more under the radar that this big name, despite their strong performances. Here’s one I think deserves more focus for the year ahead.
Outperformance factors
I’m talking about Standard Chartered (LSE:STAN). The stock’s up 60% over the past year, almost double Lloyds’ performance in the period. The financial numbers have certainly helped the stock’s outperformance.
Standard Chartered reported record first-half operating income of £8.6bn, up 6%, while pre-tax profit increased 9% to £3.55bn. Earnings per share jumped 17% and return on tangible equity (RoTE) reached an impressive 17.6%.
Another factor helping the firm outperform UK-focused peers is its geographical exposure. Despite its London listing, Standard Chartered isn’t really a UK bank. It generates most of its business across Asia, Africa and the Middle East.
As such, it gives investors exposure to faster-growing economies than just the UK. Lloyds, by contrast, is heavily tied to UK mortgages, consumer lending and the domestic economy.
An interesting diversifier
When we talk about bank profits, we often focus on interest income and for good reason, given that it usually dominates the overall business performance. Yet Standard Chartered is becoming less reliant on interest income. Wealth Solutions income jumped 38% in H1, while Global Banking revenue increased 19%. Non-interest income reached £4.37bn, exceeding net interest income of £4.22bn.
I believe that’s a great sign the bank stock can continue to rally from here. Fee-based wealth and banking revenues can provide another growth engine regardless of what happens to interest rates from here. It becomes less reliant on changes in the base rate of various developed nations, and rather can focus on growth in areas it can actually control.
Management certainly appears confident. It upgraded 2026 income guidance and announced another billion-dollar share buyback. That’s on top of the similar size repurchase completed during the first half. The interim dividend was also increased 66%.
Non-UK concerns
Of course, those targets from H1 aren’t guaranteed. One risk I’d flag is the fact that it operates in various emerging markets. This brings exposure to politics and credit that is higher than we have in the UK. A global slowdown or weaker Asian growth could also hit lending and wealth-management activity. More UK-centric banks simply don’t have this risk, and it’s something that could sway potential investors.
Yet even with these concerns, I still believe it could outperform Lloyds over the coming year. On that basis, I’m strongly thinking about adding it to my portfolio. Those investors who are on the same page as me could consider doing the same.
Should you invest £5,000 in Standard Chartered Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Standard Chartered Plc made the list?
Jon Smith has no positions in the shares mentioned.
Image source: Getty Images
Banking stocks have done well so far in 2026. One of the most popular shares for retail investors is Lloyds Banking Group. However, other FTSE banks have gone more under the radar that this big name, despite their strong performances. Here’s one I think deserves more focus for the year ahead.
Outperformance factors
I’m talking about Standard Chartered (LSE:STAN). The stock’s up 60% over the past year, almost double Lloyds’ performance in the period. The financial numbers have certainly helped the stock’s outperformance.
Standard Chartered reported record first-half operating income of £8.6bn, up 6%, while pre-tax profit increased 9% to £3.55bn. Earnings per share jumped 17% and return on tangible equity (RoTE) reached an impressive 17.6%.
Another factor helping the firm outperform UK-focused peers is its geographical exposure. Despite its London listing, Standard Chartered isn’t really a UK bank. It generates most of its business across Asia, Africa and the Middle East.
As such, it gives investors exposure to faster-growing economies than just the UK. Lloyds, by contrast, is heavily tied to UK mortgages, consumer lending and the domestic economy.
An interesting diversifier
When we talk about bank profits, we often focus on interest income and for good reason, given that it usually dominates the overall business performance. Yet Standard Chartered is becoming less reliant on interest income. Wealth Solutions income jumped 38% in H1, while Global Banking revenue increased 19%. Non-interest income reached £4.37bn, exceeding net interest income of £4.22bn.
I believe that’s a great sign the bank stock can continue to rally from here. Fee-based wealth and banking revenues can provide another growth engine regardless of what happens to interest rates from here. It becomes less reliant on changes in the base rate of various developed nations, and rather can focus on growth in areas it can actually control.
Management certainly appears confident. It upgraded 2026 income guidance and announced another billion-dollar share buyback. That’s on top of the similar size repurchase completed during the first half. The interim dividend was also increased 66%.
Non-UK concerns
Of course, those targets from H1 aren’t guaranteed. One risk I’d flag is the fact that it operates in various emerging markets. This brings exposure to politics and credit that is higher than we have in the UK. A global slowdown or weaker Asian growth could also hit lending and wealth-management activity. More UK-centric banks simply don’t have this risk, and it’s something that could sway potential investors.
Yet even with these concerns, I still believe it could outperform Lloyds over the coming year. On that basis, I’m strongly thinking about adding it to my portfolio. Those investors who are on the same page as me could consider doing the same.
Should you invest £5,000 in Standard Chartered Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Standard Chartered Plc made the list?
Jon Smith has no positions in the shares mentioned.
