Standard Chartered Targets Higher Profitability With Major Workforce Cuts

Standard Chartered PLC (LON: STAN) announced plans to reduce its corporate function workforce by more than 15% by 2030 as part of a long-term strategy to improve profitability and increase shareholder value. The London-listed banking giant said the restructuring initiative is designed to streamline operations and strengthen financial performance across its global business.

In its latest strategy update released on Tuesday, the Asia and Africa-focused lender revealed that it aims to achieve a return on tangible equity (RoTE) of approximately 18% by 2030. This target marks an increase of more than three percentage points from its current performance goals and highlights the bank’s confidence in future growth.

Standard Chartered also said it expects annual earnings per share (EPS) growth in the high teens between 2025 and 2028. Additionally, the bank plans to maintain a dividend payout ratio of at least 30%, reinforcing its commitment to delivering stronger returns for investors.

The new targets follow a period of significant transformation under CEO Bill Winters, who has led a series of reforms aimed at improving efficiency and boosting profitability. According to the company, many of its earlier financial goals were achieved ahead of schedule, giving the lender momentum to pursue more ambitious long-term objectives.

The workforce reduction will mainly impact corporate function roles and is part of a broader effort to simplify internal processes and reduce operational costs. Standard Chartered believes the move will help the bank remain competitive in an evolving global banking environment while continuing to expand its presence in key markets across Asia, Africa, and the Middle East.

Investors closely watching banking stocks and global financial institutions are expected to monitor how these changes affect Standard Chartered’s future earnings and operational performance.