Standard Chartered share price: Company to revamp retail banking unit

on Feb 9, 2015
Updated: Oct 21, 2019

Standard Chartered Plc (LON:STAN) is planning a major revamp of its retail banking division, as part of a broader restructuring at the bank, according to a report by Reuters. Citing a senior executive at the bank, the newswire today said that Standard Chartered would shift its retail banking focus to wealthier clients from ordinary customers.

“We’re steering away from clients who just want a personal loan to those who’ll buy multiple products,”Karen Fawcett, global head of retail clients at Standard Chartered said in an interview with Reuters.
Earlier this year, Standard Chartered announced that it would cut 2,000 jobs at its retail banking division this year, as part of the lender’s efforts to cut costs and halt a two-year decline in profits. Fawcett today told Reuters that she was aiming to trim the division’s cost-income ratio from 67 percent to 65 percent, and ultimately to 55 percent.

The retail banking unit generates about 30 percent of StanChart’s revenues. Affluent and business clients represent just 20 percent of the bank’s retail clients, but account for about half of the division’s profit, Reuters notes.
StanChart has also said that it will close 80-100 retail branches across most of its markets. The lender has already announced closures in South Korea and has shut many branches in Pakistan.

In today’s trading, Standard Chartered shares were 1.7 percent lower at 922.00p, as of 11:57 UTC. The bank’s stock has fallen 4.3 percent since the start of the year.
According to the Financial Times, as of February 06, 2015, the consensus forecast amongst 49 polled investment analysts covering Standard Chartered has it that investors should hold their position in the company. This consensus estimate has been maintained since May 08, 2013, when the sentiment of investment analysts deteriorated from “outperform”.
As of 14:03 GMT, Monday, 09 February, Standard Chartered PLC share price is 925.10p.

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