Standard Chartered (STAN) Investor update summary

Strategic positioning and growth drivers

• Focus on affluent wealth, international banking, and digital transformation has driven strong growth and improved returns in the wealth and retail business.

• Optimization efforts included exiting subscale markets and unsecured portfolios, reducing RWA and headcount, and reallocating resources to higher-returning segments.

• Investments in relationship managers, digital platforms, and wealth capabilities have doubled AUM in five years and accelerated client acquisition.

• The client ecosystem leverages multiple channels, including referrals, upgrades, SME/corporate connectivity, and digital banks, to create a scalable pipeline for affluent client growth.

• Positioned as a 'super-connector' with a unique network and product combination valued by clients, supporting hard-to-replicate cross-border capabilities and sustainable higher returns.

Performance and financial outcomes

• Achieved 130,000 new affluent clients for 13 consecutive quarters, doubled net new money to $52 billion, and increased RMs by 18% over two years.

• Wealth solutions income grew at 26% CAGR, AUM at 28% CAGR, and ROTE rose 300bps to 19.4%, with affluent income now 70% of total.

• Outperformed peers in AUM and net new money growth, taking market share and ranking as the third-largest wealth manager in Asia.

• 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%.

Operating model and productivity

• Digital transformation and AI integration are central to scaling advisory, onboarding, and servicing, enhancing client experience and productivity.

• RM productivity and retention are high, with 30% of RMs referred by existing staff and strong onboarding support.

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

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

• Cross-bank collaboration with CIB enables holistic solutions for business owners and family offices, increasing wallet share and referrals.