Standard Chartered (STAN) Investor update summary

Strategic positioning and growth outlook

• Positioned as a 'super connector' with a unique global network and product combination, especially in Asia, enabling hard-to-replicate cross-border flows and sustainable higher returns.

• Strategy leverages structural trends: digital transformation, rising wealth, and sustainable finance, with clear plans to exploit these trends.

• Five key growth themes: multipolar world, digital transformation, changing role of banks, rising wealth participation, and transition economy.

• Measurable milestones set for 2028 and beyond, targeting 5%-7% income CAGR, cost-income ratio of 57% by 2028, and ROTE above 15% in 2028, rising to 18% by 2030.

• Deep local expertise and a diversified network across 54 markets provide access to dynamic trade corridors and emerging markets.

Financial targets and performance

• Achieved 2026 financial plan a year early, with 2023-2025 EPS growth of 37%, ROTE improvement of 3.5 percentage points, and income growth of 16%.

• 2028 targets include ROTE above 15%, high-teens EPS CAGR, income CAGR of 5-7%, and a cost-to-income ratio of ~57%.

• Statutory ROTE for 2026 is guided at above 12%, with reported income growth at the lower end of the 5-7% range and broadly flat expenses.

• Capital allocation prioritizes organic growth, progressive dividends (≥30% payout), and buybacks, with flexibility for opportunistic RWA deployment and inorganic growth if value-accretive.

• CET1 ratio target of 13%-14%, with dynamic capital management and ongoing optimization of risk-weighted assets.

Transformation and productivity initiatives

• Major investments in technology, core banking platforms, private cloud, and payments infrastructure have delivered 10x processing power, 80% downtime reduction, and 30% operational throughput improvement.

• Operating model simplified: regional layers reduced, decision rights clarified, and 43% of workforce centralized in global capability centers, enabling standardization and scalable AI deployment.

• Productivity initiatives aim for a 20% increase in income per employee and a >15% reduction in corporate functions headcount by 2030.

• Fit for Growth program to deliver £1.3bn cost savings by end-2024, with continuous improvement and embedding AI across processes for further productivity gains.

• Cost-to-income ratio is expected to improve from 63% in 2025 to ~57% in 2028, driven by agile operating models.