Standard Chartered share price: Bank may consider headquarters shift to Asia

Standard Chartered Plc (LON:STAN) might consider moving its global headquarters to Asia, Indian newspaper The Economic Times reported today, citing two bankers, familiar with the situation. The sources also said that the troubled UK bank might also discuss plans to spin off its operations in India into a subsidiary. The bank’s board is to hold a meeting in the country on March 23, where the two issues will be discussed, according to the report. However, the paper cautioned that there was no certainty about a decision either way.

Standard Chartered, which last month announced that its long-serving chief executive officer Peter Sands would step down later this year, generates the bulk of its revenues and profit from Asia. Because of the focus on Asia, some analysts believe that the bank would benefit from moving its senior executives to its main area of operations. The Economic Times quoted Ashvin Parekh, managing director of Ashvin Parekh Advisory Services, as suggesting:

“A shift would be a prudent move to get larger control on the business. If you are away the global board is entirely dependant on local team to assess local risk.”
However, Jon Tracey, Standard Chartered global head of external communications, denied that the bank had plans to move its headquarters, when contacted today by International Business Times UK. Meanwhile, Sunil Kaushal, the group’s head of South Asia, told The Economic Times that “Immediately there is nothing on the table as of now”, regarding a shift.

In today’s trading, Standard Chartered shares were 0.6 percent up at 1,030.50p, as of 12:48 UTC. The stock has risen just over seven percent since the start of the year, boosting the company’s market capitalisation to £25.8 billion.
According to the Financial Times, as of February 28, 2015, the consensus forecast amongst 37 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 “hold”.
As of 14:27 GMT, Monday, 09 March, Standard Chartered PLC share price is 1,029.25p.

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