Standard Chartered (STAN) Investor update summary

Strategic Priorities and Financial Targets

• Aims to achieve over 15% ROTE by 2028 and 18% by 2030, with high-teens EPS CAGR and income CAGR of 5%-7%.

• Cost-income ratio targeted at ~57% by 2028, with a dividend payout of at least 30% and progressive share buybacks.

• Capital allocation is balanced between organic growth, dividends, and buybacks, maintaining a CET1 ratio of 13%-14%.

• Business mix is shifting toward higher-return, lower-risk segments, with non-interest income expected to exceed 50% of total income by 2028.

• 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%.

Transformation and Productivity Initiatives

• Major investments in technology, AI, and process simplification have modernized core infrastructure and enabled productivity gains.

• Achieved a 30% improvement in operational throughput per FTE and 80% reduction in downtime.

• Fit for Growth program to deliver £1.3bn in cost savings by year-end, with a focus on continuous improvement.

• Productivity initiatives target a 20% increase in income per employee and >15% reduction in corporate functions headcount by 2028-2030.

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

Business Model Evolution and Risk Management

• Shifted focus to network income and cross-border flows, now over two-thirds of CIB revenue.

• Originate-to-distribute model in CIB enables double-digit origination and distribution growth with single-digit balance sheet growth.

• Enhanced risk profile: investment grade exposures in CIB up from 42% to 74% over a decade; unsecured balances in WRB down from 19% to 12%.

• Risk-weighted assets have been reduced by 25%, and the business has shifted to higher quality, lower risk clients.

• Resilience and diversification across geographies, products, and client segments underpin stability and growth.