Standard Chartered is set to cut over 15% of its corporate functions roles by 2030 while raising its medium-term profitability targets. The bank aims to increase income per employee by approximately 20% by 2028, targeting a 15% return on tangible equity by 2028 and 18% by 2030. This strategic move is part of a broader initiative to enhance operational efficiency and drive sustainable growth, according to CEO Bill Winters.
The implications for the financial markets are significant. Jefferies analyst Joseph Dickerson views the new targets as conservatively set, predicting mid-teens earnings-per-share growth. The bank’s recent 17% profit increase, bolstered by its Wealth Solutions and Global Banking segments, positions it well despite a $190 million charge for expected losses related to the Middle East conflict. Analysts maintain a positive outlook, with Jefferies reiterating a “buy” rating and a price target of 2,250 for Standard Chartered’s shares.
Investors should note Standard Chartered’s focus on leveraging opportunities in the Middle East and Africa, particularly through its new risk-sharing facility aimed at enhancing supply chains in key markets. This initiative could further solidify its revenue streams from these regions, making it a stock to watch in the coming months.
Source: cnbc.com