Standard Chartered announced plans to reduce over 15% of its corporate functions workforce by 2030 while aiming for improved profitability metrics. The bank’s strategy includes increasing income per employee by approximately 20% by 2028. Currently, the bank employs around 82,000 individuals, with about 52,000 working in corporate support roles such as human resources and supply chain management.
Additionally, Standard Chartered set ambitious targets for return on tangible equity, aiming for 15% by 2028 and 18% by 2030, an increase of over three percentage points from its outlook for 2025. CEO Bill Winters emphasized the bank’s commitment to investing in capabilities that enhance competitive advantages and promote sustainable growth.
Analyst Joseph Dickerson from Jefferies described the targets as "conservatively struck," predicting mid-teens earnings-per-share growth, while forecasting a 5-7% revenue growth range. Jefferies has maintained a buy rating on Standard Chartered shares, which experienced a rise of more than 2% in Hong Kong trading.
This announcement follows a reported profit increase of 17% for the bank, attributed to strong performance in its Wealth Solutions and Global Markets segments. However, the bank also recorded a $190 million charge to account for potential losses related to the ongoing Middle East conflict. Standard Chartered continues to focus on leveraging increased trade between the Middle East and Asia to drive revenue, given that a significant portion of its earnings is derived from Asia, Africa, and the Middle East.
In collaboration with the International Finance Corporation, Standard Chartered has also introduced a new risk-sharing facility aimed at supporting supply chain finance in Africa, which will extend coverage up to $300 million across eight markets, including Ghana and Kenya.
Why this story matters
- The bank’s restructuring reflects broader industry changes amid evolving market conditions.
Key takeaway
- Standard Chartered is proactively targeting profitability and efficiency through workforce reduction and enhanced financial metrics.
Opposing viewpoint
- Critics may argue that significant job cuts could impact organizational morale and service quality in the long run.
