HONG KONG, May 19 (Reuters) – Standard Chartered on Tuesday raised its return target to more than 15% in 2028 and said it plans to cut its corporate function roles by about 15% by 2030.
The bank, in a strategy update to investors, said it would deliver an over 15% return on tangible equity (ROTE) – a key bank profitability measure – more than three percentage points higher than 2025, and building to about 18% in 2030.
Its earlier return of a tangible target was above 12% for 2026.
The ambition, however, comes as Middle East uncertainty clouds the outlook. Asia-Pacific banks may need to raise loan-loss provisions further if the Iran conflict drags on, as higher energy costs and weaker growth strain borrowers, analysts said.
For StanChart, the region has so far been both a risk and a revenue driver. The bank set aside $190 million in precautionary provisions linked to the Middle East conflict in the first quarter.
StanChart said the next phase of its growth would be aided by a more integrated operating model, which it aims to achieve by reducing corporate functions, including back-office roles.
The company had more than 81,800 total full-time employees as of December 31, according to its annual report.
The Asia- and Africa-focused bank unveiled its latest global strategy after hitting earlier performance targets ahead of schedule, shifting attention to whether its Chief Executive Bill Winters can help it sustain momentum after years of restructuring.
StanChart executed a decade-long turnaround, transforming itself from a potential takeover target into a profitable emerging-markets specialist.
“We achieved our 2026 medium-term financial targets a year earlier than planned,” Winters said in a statement.
“We now have a more focused, streamlined and efficient organisation.”
StanChart underpins its new target by keeping its focus on higher-margin businesses, including affluent retail clients and financial institutions within its corporate and investment banking division.
In the first quarter, the bank reported both its highest wealth revenue and new client money.
On Monday, the lender named Manus Costello, investor relations head and equity research veteran, as its permanent CFO, succeeding Diego De Giorgi, who resigned in February after nearly three years with the bank.
(Reporting by Selena Li in Hong Kong and Rajasik Mukherjee in Bengaluru; Editing by Shilpi Majumdar)
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