StanChart to axe jobs amid greater AI usage as lays out new targets

(Alliance News) - Standard Chartered PLC on Tuesday said it will cut more than 15% of corporate functions roles by 2030, as the lender set out new medium term financial targets after achieving its previous aim a year earlier than planned.

At an investor event in Hong Kong, the London-based lender focused on Asia said it expects to achieve a more than 15% return on tangible equity in 2028, building to around 18% in 2030. It had achieved a statutory RoTE of 11.9% in 2025.

"We achieved our 2026 medium-term financial targets a year earlier than planned. We now have a more focused, streamlined and efficient organisation, positioning us strongly for the next stage of growth and to deliver our strategy at greater scale and pace," StanChart said.

The FTSE 100 listing is aiming is to produce high-teens compound annual growth in earnings per share and 5% to 7% income CAGR from 2025 to 2028.

In 2025, StanChart reported EPS of 195.4 US cents and operating income of USD20.94 billion.

The bank forecast a cost-to-income ratio of around 57% in 2028, down from 63% in 2025, aided by "positive income-to-cost jaws" and expects to operate within a CET1 ratio range of 13% to 14% versus 14.1% in 2025.

Supporting this will be a drive to improve productivity raising income per employee by around 20% by 2028, aided by a reduction in corporate functions roles of more than 15% by 2030, StanChart said.

According to its 2025 annual report, corporate function roles include employees in human resources, corporate affairs and supply chain management. Bloomberg said the bank had 52,271 of employees in back-office operations at the end of last year, suggesting job cuts of at least 7,800.

The bank said it is "scaling practical uses of automation, advanced analytics and artificial intelligence to streamline processes, improve decision‑making and enhance both client service and internal efficiency."

Chief Executive Bill Winters adds: "Our strategy is grounded in a simple belief: the world is becoming more connected, more complex and more cross-border. Clients need a bank that can help them navigate that environment with confidence."

Driving the new targets, the bank said its Wealth & Retail Banking business is accelerating the timeline of its previously stated ambitions from 2029 to 2028, notably targeting USD200 billion of net new money, and affluent income to reach 75% of its total.

StanChart said the new targets will support a dividend payout ratio of 30% or more, with a progressive dividend per share.

Shares in the bank were down 0.2% at 1,917.00 pence each in London on Tuesday morning.

By Jeremy Cutler, Alliance News reporter

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