Standard Chartered share price: Group to target high-end customers

on Apr 5, 2017
Updated: Oct 21, 2019

Standard Chartered (LON:STAN) plans to more than double the minimum level of wealth required for private banking clients globally, the Financial Times has revealed. The move comes with the Asia-focused lender looking to target ultra-rich customers.

Standard Chartered’s share price has been little changed in London this morning, having inched 0.27 percent higher to 746.90p as of 10:07 BST, largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.16 percent higher at 7,333.77 points. The group’s shares have gained more than 72 percent over the past year, and are up by some 12 percent in the year-to-date.

Sources with knowledge of the matter told the FT this week that StanChart was set to hike the threshold of investable client assets from $2 million to $5 million this year, and would further concentrate on attracting individuals and families with at least $30 million in investable assets. The shift in focus could result in layoffs for some bankers who have targeted the less wealthy, and the hiring of managers with experience in the “ultra-high net worth” market segment starting at $30 million.
The FT notes that StanChart’s private bank has focused on Asia, which has in recent years become a battleground for western and regional lenders fighting for the wealth of the region’s tycoon families.
The move comes with the blue-chip lender currently undergoing a restructuring under chief executive Bill Winters. In February, the company delivered a rise in profits for 2016, but forecast that operating conditions will remain challenging this year, even with some headwinds easing.
In analyst ratings, Credit Suisse reiterated its ‘underperform’ stance on StanChart last week, valuing the shares at 570p. According to MarketBeat, the Asia-focused lender currently has a consensus ‘hold’ rating and an average price target of 666.84p.
As of 10:37 BST, Wednesday, 05 April, Standard Chartered PLC share price is 748.10p.

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