Standard Chartered said it would hit a key profitability target a year earlier than expected after posting a 3 percent increase in third-quarter earnings on the back of strong revenue in its wealth, global banking and markets businesses.

The London-headquartered lender, which earns most of its revenue in emerging markets in Asia and Africa, reported on Thursday a pretax profit for the third quarter of US$1.77 billion. That compared with US$1.72 billion a year earlier and beat the US$1.52 billion average of 14 analyst estimates compiled by the bank.

StanChart said it now expected income growth this year to be at the top end of its 5 percent to 7 percent guidance range, whereas in July it had forecast results around the bottom end.

That means it will reach its goal of a 13 percent return on tangible equity, a key profitability metric, in 2025 rather than an earlier forecast of 2026.

The bank's Hong Kong-listed shares extended gains after the results release, rising more than 3 percent.

StanChart's results showed strong performance across its businesses, particularly in wealth management, and suggested the bank will likely upgrade its medium-term targets for 2026 and beyond when it reports full-year results in February, Jefferies analyst Joe Dickerson said.

StanChart CEO Bill Winters said in a statement that a "sharper strategic focus on servicing our clients' cross-border and affluent banking needs is paying off" with double-digit growth in wealth solutions and global banking.

Wealth management income shot up by 27 percent in the third quarter, with inflows and the number of new accounts rising on demand for wealth advice amid market volatility.

StanChart has said it will target US$200 billion in new assets and double-digit growth in income from its wealth business over the next five years as part of its wider strategy to shift to higher-fee-earning businesses.

Non-interest income for the quarter rose 12 percent to US$2.4 billion from a year ago, ahead of analysts' consensus of US$2.3 billion.

The bank's capital markets and advisory fee income grew 33 percent during the period, as a rebound in corporate confidence drove increased mergers and acquisitions this year, despite tariffs and economic uncertainty.

StanChart's London-listed shares have risen 53 percent this year, outpacing a 37 percent gain for rival HSBC. (Reuters)