Standard Chartered (STAN) CIB Investor Seminar summary

Strategic priorities and business model

• Targeting 5%-7% annual income growth before interest rate impacts, with positive income-to-cost jaws and higher income returns on RWAs from 2024 levels, leveraging a unique global network and diversified client base.

• Focus on deepening client relationships, especially with large corporates, financial institutions, and financial sponsors, supported by a new coverage team and ongoing client rationalization.

• Expansion into new markets such as Morocco, Saudi Arabia, and Egypt, with regulatory approval for a Morocco office to support key sectors and Africa-EU trade.

• Emphasis on digital innovation, sustainable finance, and expanding the financial institution client base to drive future growth.

• Acts as a superconnector for cross-border capital, goods, and services, with clients banking in over 30 markets.

Financial performance and targets

• Achieved 8% income CAGR over five years, reaching $11.9bn in 2024, outpacing peers and global GDP growth.

• RWA optimization released $25 billion since 2019, reallocating $21 billion to higher-returning areas, lifting income over RWA by 300bps and improving RoRWA to 7.8%.

• Cost base managed with 4% CAGR from 2019-2024, supporting 8% income CAGR; ongoing focus on digital investment and process efficiency.

• Financial targets include network income reaching 70% of business and FI income 60% over the medium term.

• Improved risk profile with lower loan-loss rates and enhanced market risk management.

Client strategy and market positioning

• Two-thirds of Fortune 500 companies banked, with a leading position in syndicated loans, emerging market FIG, and US dollar clearing.

• High-returning, lower-risk FI and multinational segments now contribute ~90% of CIB client income, with FI segment at 51% of CIB income in 2024.

• Enhanced cross-sell and wallet share, with ~90% of CIB income from clients using more than three products/markets and average income per client up ~35% since 2019.

• Network income grew at 11% CAGR since 2019, with strong growth in Middle East, Africa, and ASEAN supply chain corridors.

• Digital platforms and product innovation, such as SC Markets and digital asset custody, enhance client experience and operational efficiency.