Standard Chartered is initiating a $1 billion share buyback after a record performance for the first half of the year fuelled by a strategy that cut back-office jobs to focus on AI.

The bank’s operating income rose six per cent compared to the first half of 2025, with particular growth in its wealth solutions and global banking divisions, which grew 38 and 19 per cent respectively. Its pre-tax profit was $4.8 billion, a nine per cent increase to the same time last year.

Standard Chartered also raised its annual profit guidance from the low end of its five-to-seven per cent range to the middle.

“Our performance demonstrates the strength of our differentiated international network and the disciplined execution of our strategy,” said Bill Winters, Standard Chartered’s chief executive.

“Clients continue to turn to us to facilitate trade, investment and wealth flows across the world’s most dynamic markets. We delivered a 17 per cent increase in our earnings per share, and our upgraded income guidance and new share buyback of $1 billion reflect our confidence in the business.”

Regarding the quarterly earnings, Manus Costello, the bank’s chief financial officer who took over from Diego De Giorgi this month, said: “We’re very pleased with the profitability outcome, and it’s a really good start to that three-year plan that we laid out a couple of months ago.”

The three-year plan, announced in May, includes cutting around 7,800 back office jobs and replacing them with AI. At the time, the bank said it this would reduce its corporate functions positions by around 15 per cent, including jobs in compliance and human resources.

At the time, the plan drew controversy over Winters’s decision to describe the cuts as replacing “lower-value human capital” with financial and investment capital. He declined to call the cuts job losses, preferring the term “role reductions” and adding that those affected were informed early and offered opportunities to retain or move into new positions within the organisation.

Winters later apologised for his comments.

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