Standard Chartered plc (LON:STAN) has 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.
Bill Winters, Group Chief Executive, said: “Our strategy is grounded in a simple belief: the world is becoming more connected, more complex and more cross-border. 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.”
New medium-term targets
We achieved our 2026 medium-term financial targets a year earlier than planned. We now have a more focused, streamlined and efficient organisation, positioning us strongly for the next stage of growth and to deliver our strategy at greater scale and pace.
We will:
· Deliver a >15% RoTE in 2028, a more than 3 percentage point uplift from 2025, and building to ~18% in 2030
· Produce a high-teens EPS CAGR and 5-7% income CAGR from 2025-2028
· Generate a cost-to-income ratio* of ~57% in 2028, down from 63% in 2025, aided by positive income-to-cost jaws
· Drive productivity improvements to raise income per employee by ~20% by 2028, aided by a reduction in corporate functions roles of >15% by 2030
· Operate within a CET1 ratio range of 13-14% with a loan loss ratio of 30-35bps through-the-cycle
· Support a dividend payout ratio of 30% or more, with a progressive dividend per share
The compounding strength of our differentiated network and product capabilities
At Standard Chartered, we are building the leading super-connector institution for sophisticated clients operating across borders, utilising competitive strengths in areas with long-term structural growth potential. We support clients where international activity is fast growing, complexity is high and our network creates the greatest value. The strength of this model compounds over time. As clients grow and become more international, they increasingly use us across multiple products, markets and segments. This deepens connectivity across our network, strengthens client relationships and drives higher quality, more diversified and durable growth. We are investing to amplify this compounding effect.
Standard Chartered is now the third largest and fastest growing wealth manager in Asia.
· Our Wealth & Retail Banking (“WRB”) business is accelerating the timeline of its previously stated ambitions from 2029 to 2028, notably targeting $200bn of Net New Money, and Affluent income to reach 75% of its total.
· We will invest disproportionately in this business, while continuing to concentrate on markets and portfolios where we have scale and the most distinctive client proposition.
· As WRB continues its sharp focus on affluent clients, we are further aligning parts of our retail client portfolio in Hong Kong with Mox’s digitally led proposition. This increases scale at Mox and supports its development of a future affluent client pipeline.
We are investing in long-term structural trends to help corporate and institutional clients navigate a more connected, digital and increasingly complex global economy.
· Our Corporate & 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.
· We are investing in higher-returning elements of its business, such as the Financial Institutions client segment, while consolidating leadership in areas including RMB, Sustainable Finance, and Islamic Finance.
Our next phase of our growth will be supported by a simpler, faster and more connected operating model.
· We will continue to apply disciplined workforce planning, aided by a reduction in corporate functions roles of >15% by 2030.
· We are scaling practical uses of automation, advanced analytics and artificial intelligence to streamline processes, improve decision‑making and enhance both client service and internal efficiency.
Details of the Investor Event will be available on sc.com/investorevent.
* cost-to-income ratio is ex-notables
