Standard Chartered has announced a plan to cut corporate functions roles by over 15% by 2030 as part of broader cost-cutting measures, alongside new medium-term profitability targets.
Key Details
- The workforce reduction aims to raise income per employee by about 20% by 2028.
- Corporate function roles include human resources, corporate affairs, and supply chain management.
- Of roughly 82,000 employees, about 52,000 work in support roles; the remainder are in business roles.
- The bank targets a 15% return on tangible equity in 2028 (up from 2025's figure) and about 18% in 2030.
"The bank is investing in capabilities that will compound competitive advantages and drive sustainable growth and higher quality returns over time."
— CEO Bill Winters
Analyst Perspective
Jefferies analyst Joseph Dickerson described the new targets as "conservatively struck," stating they could deliver mid-teens earnings-per-share growth and a path that may exceed guidance. He noted the bank can commit to 5-7% revenue growth given opportunities in its footprint against geopolitical and macro unknowns.
Market Reaction
- Jefferies maintained a buy rating and 2,250 price target on StanChart's London-listed shares (last close: 1,921.50).
- Hong Kong-listed shares rose over 2% in afternoon trade.