Standard Chartered Plc announced plans to cut support roles by more than 15% as part of its artificial intelligence transformation strategy. According to reports from Moneycontrol, the bank will drive productivity improvements to raise income per employee by about 20% by 2028, aided by a reduction in corporate functions roles of more than 15% by 2030. These roles are largely back-office support roles that will be streamlined through the scaling of practical uses of automation, advanced analytics and artificial intelligence. The bank had 52,271 employees in back-office operations at the end of last year, as reported by Bloomberg Law. CEO Bill Winters emphasized that "We don't have job losses, but we do have job role reductions in favor of the machines, and that will accelerate as we go forward into AI." The bank outlined these initiatives during an event in Hong Kong for analysts and investors, where the job reductions will be aided by the scaling practical uses of automation, advanced analytics and artificial intelligence to streamline processes, improve decision-making and enhance both client service and internal efficiency.
The lender has laid out new return targets, including a 3 percentage point improvement in return on tangible equity to 15% in 2028 and then to 18% by 2030. As reported by Moneycontrol, it will also seek to improve costs to income ratio to 57% in 2028. CEO Bill Winters stated that the bank is investing in capabilities that will compound competitive advantages and drive sustainable growth with clear targets in place. Through the implementation of advanced analytics and AI, Standard Chartered aims to streamline processes, improve decision-making, and enhance customer service and internal efficiency. The bank also plans to increase the dividend payout ratio to 30% or more, reflecting confidence in its enhanced financial performance.
The bank's earnings hit records and comfortably outpaced analyst estimates, bolstered by a record $18 billion in net new money flows to its wealth business. According to Moneycontrol, this helped cushion the blow from $190 million in precautionary management overlays set aside to navigate risks stemming from conflict in the Middle East. The bank achieved its 2026 medium-term financial targets a year earlier than expected, prompting the bank to raise its medium-term goal to more than 15% return on tangible equity by 2028, and about 18% by 2030. The bank's 'Fit for Growth' restructuring program is slated to conclude this year, designed to streamline operations and deliver $1.5 billion in savings comprised of hundreds of individual projects with targets ranging from minor operational tweaks to multi-million dollar overhauls. Jefferies finds the latest targets as "conservatively struck" and projects mid-teens earnings-per-share growth.
The bank named Manus Costello as its new chief financial officer, promoting a former research analyst to replace Diego De Giorgi. As reported by Moneycontrol, Costello was hired in 2024 as global head of investor relations and was widely considered a top contender to eventually succeed Winter. After surging almost 120% between early April 2025 and early February, the share rally suffered setbacks from De Giorgi's surprise departure and Middle East conflict outbreak, though shares have largely recovered since then. De Giorgi, a veteran of Bank of America Corp. and Goldman Sachs Group Inc., was widely considered a top contender to eventually succeed Winter.
