Standard Chartered PLC (LON:STAN) said on Tuesday it will pare corporate functions roles by more than 15% by 2030 as part of a broader plan to boost shareholder returns and streamline operations.
In a strategy update, the Asia and Africa-focused lender set a target to reach about 18% return on tangible equity in 2030. The bank described that outcome as an increase of more than three percentage points and as exceeding 15% return on tangible equity, a commonly used measure of bank profitability.
Standard Chartered also identified growth and payout objectives for the middle of the decade. The lender said it will target annual earnings-per-share growth in the high teens across the 2025-2028 period, and it will support a dividend payout ratio of 30% or more.
Bank management framed the workforce reduction and financial aims as steps to simplify the groups structure and increase returns for investors. The strategic adjustments build on earlier performance improvements: Standard Chartered said it had already met previous targets ahead of schedule following an extensive programme of reforms implemented under chief executive Bill Winters.
The announcement centers on corporate functions roles rather than front-line business staff, and the stated time horizon extends to 2030. Beyond the headcount percentage and the stated return, the update sets out multi-year EPS growth guidance and a commitment to a minimum dividend payout ratio.
Standard Chartered did not provide additional implementation details in the strategy update released on Tuesday. The bank described the package of measures as aiming to streamline operations and further boost shareholder returns, while anchoring near-term and medium-term financial targets.
Context and outlook
The banks priorities in the plan are clear: reduce corporate functions costs by more than 15% by 2030, pursue an approximate 18% return on tangible equity in 2030, target high-teen annual EPS growth from 2025 to 2028, and maintain a dividend payout ratio of at least 30%.
Management noted that prior goals had been reached ahead of schedule after sweeping reforms under CEO Bill Winters, and the new targets are posed as a continuation of efforts to sharpen the organisation and lift returns for shareholders.