Standard Chartered on Friday reported 2023 pre-tax revenue rose 18%, according to forecasts, and rewarded shareholders with a $1 billion share buyback and a soar in dividend.

StanChart, which earns most of its income in Asia, stated statutory pretax revenue for 2023 reached $5.09 billion, according to $5.1 billion from 15 analyst estimates compiled by the financial institution.

The financial institution took a $850 million impairment primarily from its stake in Chinese language lender Bohai Financial institution, its second time writing down the worth of the unit because the lender was hit by rising unhealthy loans as development on this planet’s second-largest economic system sputtered.

The hefty loss in China, a core goal for StanChart’s technique, underlines the problem it faces to increase within the nation as policymakers wrestle to arrest a deepening property disaster and weak shopper confidence.

A contemporary $150 million writedown of its stake in Bohai Financial institution, following a $700 million hit earlier this 12 months, decreased its worth to $700 million from $1.5 billion at first of the 12 months.

StanChart stated banking trade challenges and the uncertainty swirling across the property market have been in charge for the decline within the stake’s present worth.

The London-headquartered lender additionally introduced a last dividend of $560 million or 21 cents per share, leading to a 50% enhance of full 12 months dividend payout to 27 cents, larger than a consensus view of 23.7 cents.

CEO Invoice Winters stated in a launch that the financial institution targets to return at the least $5 billion over the following three years.

The financial institution set out restrained new steerage on its future efficiency, saying it anticipated earnings to develop 5-7% between 2024 and 2026, as in opposition to 10% development in 2023.

The lender stated it might purpose to extend return on tangible fairness, a key profitability metric, ‘steadily’ from the present degree of 10% to 12% by 2026.

“The ‘final mile’ of inflation could show stickier than anticipated, and geopolitical dangers abound,” Group Chairman José Vinals stated within the launch.

“As we start 2024, the conflict between Ukraine and Russia continues, rising uncertainty for nations in Europe and elsewhere.”