StanChart Lays Out Plan for 18% Return, Corporate Job Cuts — Update

By Sherry Qin

Standard Chartered has laid out targets for higher returns over the medium term and announced plans to cut corporate-function roles as it scales AI use.

The London-based bank is aiming for a more than 15% return on tangible equity in 2028, building up to about 18% in 2030.

The upgrades come after the lender said it hit 2026 medium-term financial targets a year earlier than expected, positioning it for the next stage of growth.

To that end, StanChart is scaling automation and AI to streamline operations, improve decision-making and enhance efficiency.

"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," Chief Executive Bill Winters said.

One of the priorities will be wealth and retail banking, a business StanChart said it will invest in disproportionately.

The wealth and retail banking segment is accelerating the timeline of previously stated ambitions to 2028 from 2029, it said, "notably targeting $200bn of net new money, and affluent income to reach 75% of its total."

The lender, which is listed in London and Hong Kong, also set a target to raise income per employee by around 20% by 2028--aided by a more than 15% reduction in back-office jobs by 2030.

Other goals included earnings-per-share compound annual growth in the high teens from 2025-2028 and supporting a dividend payout ratio of 30% or more, with a progressive dividend per share.

StanChart's target-setting comes a day after it named Manus Costello as group chief financial officer. The appointment comes months after the surprise departure of Diego De Giorgi, who was widely seen as a front-runner to succeed Winters.

For analysts at Jefferies, the new goals are on the conservative side.

Since the last plan was delivered ahead of schedule, Jefferies suspects that the bank's actual ambition is much larger, analyst Joseph Dickerson wrote in a note.

"The bigger picture is that the company can clearly commit to a 5-7% revenue growth range given the opportunities in its footprint against a matrix of unknowns in the broader geopolitical/macro environment," he said.

The bank, which generates most of its profit in Asia, reported robust results in the first quarter despite booking precautionary credit charges related to the Middle East conflict.

StanChart's Hong Kong-listed shares were last 2.3% higher at HK$201.20.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

May 19, 2026 00:10 ET (04:10 GMT)