HONG KONG – Standard Chartered plans to cut support roles by more than 15 per cent, joining other lenders to use artificial intelligence to replace workers, as it raised its return targets over the next four years.
The bank said it would drive productivity improvements to raise income per employee by about 20 per cent by 2028, aided by a reduction in corporate functions roles of more than 15 per cent by 2030, according to a statement on May 19. These roles are largely back-office support roles.
The lender also laid out new return targets, including a 3 percentage point improvement in return on tangible equity to 15 per cent in 2028 and then to 18 per cent by 2030. It will also seek to improve costs to income ratio to 57 per cent in 2028.
The bank is kicking off an event for analysts and investors in Hong Kong on May 19. Chief executive Bill Winters and his management team will discuss priorities, growth initiatives and its financial framework for the medium-term.
“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,” Mr Winters said in a statement.
The job reductions will be aided by the “scaling practical uses of automation, advanced analytics and artificial intelligence to streamline processes, improve decision-making and enhance both client service and internal efficiency”.
The bank is meeting with investors after earnings hit records and comfortably outpaced analyst estimates, bolstered by a record US$18 billion (S$23 billion) in net new money flows to its wealth business. That helped cushion the blow from US$190 million in “precautionary management overlays” set aside to navigate risks stemming from conflict in the Middle East.
The bank’s “Fit for Growth” restructuring programme is slated to conclude this year. The initiative, designed to streamline operations and deliver US$1.5 billion in savings, comprised hundreds of individual projects with targets ranging from minor operational tweaks to multi-million dollar overhauls.
After surging almost 120 per cent between early April 2025 and early February this year, the share rally suffered a setback, first from the surprise departure of chief financial officer Diego De Giorgi, and later from the outbreak of the conflict in the Middle East. They have largely recovered since then.
Mr De Giorgi, a veteran of Bank of America Corp and Goldman Sachs Group, was widely considered a top contender to eventually succeed Mr Winters.
The lender on May 18 named Mr Manus Costello as its new chief financial officer, promoting a former research analyst and critic of the bank to replace Mr De Giorgi. Mr Costello was hired in 2024 as as global head of investor relations. BLOOMBERG
Source : https://www.straitstimes.com/business/stanchart-to-slash-back-office-roles-to-boost-returns
