Standard Chartered (LON:STAB) used an investor event in Hong Kong to outline a new three-year plan centered on higher returns, continued capital distributions and growth in cross-border banking, wealth management, digital assets and sustainable finance.
Group Chief Executive Bill Winters told investors that Standard Chartered is now in what management describes as a “compounding” phase after years of repositioning and execution. Winters said the bank’s network is its “home market” and described the group as a “super connector” linking Asia, the Middle East, Africa, Europe and the U.S.
New financial targets
Manus, Standard Chartered’s head of investor relations and interim CFO, said the bank delivered its previous three-year plan in two years. He said the group achieved revenue growth of 16%, underlying ROTE of 14.7% and more than £9 billion of announced capital distributions since February 2024. He also said the company reduced its share count by 15% over that period.
For the new plan, management laid out several targets:
- Income compound annual growth of 5% to 7%.
- A cost-income ratio of 57% in 2028, down from 63% last year.
- A through-the-cycle loan loss rate of 30 to 35 basis points.
- A common equity tier 1 ratio range of 13% to 14%.
- A dividend payout ratio of at least 30%, with a progressive dividend per share.
- ROTE of more than 15% in 2028 and around 18% by 2030.
- High-teens earnings-per-share CAGR over the plan period.
Manus said the improvement in returns would be driven by a shift in business mix. In Corporate and Investment Banking, the bank expects financial institutions income to rise from 54% to 60% over the medium term, while network income is expected to increase from about two-thirds of income to 70% by 2028. In Wealth and Retail Banking, affluent income is expected to rise from 70% to 75% of the division by 2028.
Capital allocation and shareholder returns
Winters said the bank would continue to prioritize investment in its businesses, but also expected to keep returning capital through dividends and buybacks. He said the company still sees “tremendous value” in its shares.
Manus said Standard Chartered expects to use capital broadly across three categories: about one-third for risk-weighted asset growth, one-third for dividends and one-third as available capital, including buybacks. He clarified during the question-and-answer session that the planning assumption for available capital is share buybacks, while the bank would retain flexibility to deploy capital into growth opportunities if they generate economic value.
On potential acquisitions, Winters said there is nothing included in the plan for inorganic growth and “nothing on the table.” He said any deal would need to be strategically relevant and exceed the financial returns available from buying back the bank’s own shares.
Technology, AI and efficiency
Tanuj Kapilashrami, group chief operating officer, and Noelle Eder, group head of technology and operations, presented the bank’s transformation agenda. Kapilashrami said Standard Chartered wants to operate as a “simple, connected and fast” bank, with scalable systems and standardized processes across its global network.
Eder said the bank completed its global private cloud in the fourth quarter of last year and now has 10 times the prior processing power. She also said more than 90% of the bank’s markets are now on a single global core banking platform after the migration of Hong Kong in March.
The bank said its Fit for Growth program remains on track to deliver £1.3 billion of cost savings by the end of the year. Kapilashrami also said Standard Chartered has mapped 100% of its processes and related skills, creating a foundation for broader AI deployment.
Management set productivity targets that include a 20% increase in income per employee by 2028 and at least a 15% reduction in corporate functions headcount over the longer term. Eder said the bank is using an enterprise AI platform across risk management, productivity and data-driven precision, while remaining model-agnostic because AI capabilities are changing rapidly.
Corporate banking, digital assets and wealth
Roberto, speaking on the Corporate and Investment Banking business, said Standard Chartered’s CIB strategy is focused on network income, financial institutions clients, originate-to-distribute activity, sustainable finance and digital assets. He said sustainable finance income crossed $1 billion in 2025, one year ahead of the bank’s public commitment.
Roberto also said Standard Chartered has been experimenting in digital assets since 2016 and is positioning itself as a bridge between traditional finance and decentralized finance. Winters said earlier that the bank has a 20% share in the minting and burning of USDC and is the third-largest participant in that activity.
In Wealth and Retail Banking, CEO Judy Hsu said the bank has exited 10 subscale markets, reduced unsecured risk-weighted assets by $5 billion and cut headcount by 20% while investing in affluent and international banking. She said AUM has doubled over five years, wealth solutions income has grown at a 26% CAGR and ROTE in the division has risen 300 basis points to 19.4%.
Hsu said the bank has acquired 130,000 new affluent clients, doubled net new money to $52 billion over the last two years and achieved best-in-class net promoter scores in eight of nine markets for two consecutive years. The division is now targeting cumulative net new money of $200 billion from 2025 to 2028 and double-digit wealth income growth from 2026 to 2028.
Executives framed the strategy around long-term trends including Asian wealth creation, cross-border trade and investment, the rise of non-bank financial institutions, digital money and the transition economy. Management repeatedly emphasized that the plan depends on continuing to grow revenue faster than costs while keeping risk discipline and capital flexibility intact.
About Standard Chartered (LON:STAB)
Standard Chartered PLC is an international banking company. The Banks’s segments include Corporate & Institutional Banking, Retail Banking, Commercial Banking and Private Banking. Its Corporate & Institutional Banking segment allows companies and financial institutions to operate and trade globally, and its Private Banking segment supports high net worth individuals with their banking needs across borders and offers access to global investment opportunities. Its Retail Banking segment offers clients, as well as small businesses a range of banking support solutions, and its Commercial Banking segment provides mid-sized companies with financial solutions and services.
