Standard Chartered sets out latest growth plan

Standard Chartered sets out latest growth plan

On May 19, Standard Chartered announced plans to invest ahead of long-term trends to maintain strong growth, boost productivity, further improve the quality of earnings, and maximise its competitive advantages.

Standard Chartered achieved its 2026 medium-term financial targets a year earlier than planned. It now has a more focused, streamlined and efficient organisation, positioning the bank strongly for the next stage of growth and to deliver its strategy at greater scale and pace.

Accordingly, Standard Chartered will deliver a more than 15 per cent return on tangible equity in 2028, a more than 3 percentage point uplift from 2025, and building to approximately 18 per cent in 2030. The bank will produce a high-teens earnings per share compound annual growth rate (CAGR) and 5-7 per cent income CAGR from 2025-2028 while generating a cost-to-income ratio of approximately 57 per cent in 2028, down from 63 per cent in 2025, aided by positive income-to-cost jaws.

In addition, the bank aims to drive productivity improvements to raise income per employee by approximately 20 per cent by 2028, aided by a reduction in corporate functions roles of more than 15 per cent by 2030. It expects to operate within a CET1 ratio range of 13-14 per cent with a loan loss ratio of 30-35bps through the-cycle. This is coupled with supporting a dividend payout ratio of 30 per cent or more, with a progressive dividend per share.

Bill Winters, group chief executive, said, “Clients need a bank that can help them navigate that environment with confidence – that is where Standard Chartered is distinctive. Our trusted ability to combine network and product capabilities to solve challenging cross-border problems is difficult to replicate. We are investing in the capabilities that will compound our competitive advantages and drive sustainable growth and higher quality returns over time, with clear targets in place.”

Standard Chartered is building the leading super-connector institution for sophisticated clients operating across borders, utilising competitive strengths in areas with long-term structural growth potential. The bank supports clients where international activity is fast growing, complexity is high, and its network creates the greatest value.

Standard Chartered is now the third-largest and fastest growing wealth manager in Asia. Its wealth and retail banking business is accelerating the timeline of its previously stated ambitions from 2029 to 2028, notably targeting $200 billion of net new money, and affluent income to reach 75 per cent of its total.

Meanwhile, its corporate and investment banking business continues to leverage the competitive advantage of a unique global network that can flex to support clients in anticipation of shifts in supply chains and capital flows.

The next phase of the bank's growth will be supported by a simpler, faster and more connected operating model. Specifically, Standard Chartered will continue to apply disciplined workforce planning, aided by a reduction in corporate functions roles of more than 15 per cent by 2030.

It is also scaling practical uses of automation, advanced analytics and AI to streamline processes, improve decision-making and enhance both client service and internal efficiency.

VIR