This archive report was first published on 3 May 2021.
On April 29, 2021, Standard Chartered Plc, a UK-based bank, announced plans to downsize its global staff numbers to around 400 to cut long-term costs, following a more robust than expected first-quarter profit.
The bank's decision comes as it begins to recover from the economic hit caused by the COVID-19 pandemic. In its first-quarter results, Standard Chartered reported an 18% increase in pre-tax profit, reaching $1.4 billion.
Branch Network Reduction ¶
As part of its cost-cutting drive, Standard Chartered plans to shrink its global branch network to a third of its 2014 total of 1,200 branches. The bank will also give up office space worldwide.
StanChart's CFO, Andy Halford, noted that the bank will be looking closely at markets with higher branch numbers, citing Hong Kong as an example where branch numbers are modest.
Impact on Kenyan Operations ¶
Standard Chartered Bank Kenya Limited, one of the most established lenders in Kenya, will likely be affected by the bank's global restructuring plans. The bank was the first to introduce Automated Teller Machines to customers in Kenya.
Barclays Bank Plc, a rival bank, has already exited the Kenyan market after selling to Standard Bank of South Africa, which operates under the brand name Absa Bank.
Future Plans ¶
Standard Chartered expects income to be similar to 2020 and grow more in the following year as fee-based businesses offset those being crushed by low-interest rates. The bank's wealth management business had a record quarter with income up 21% on strong sales of foreign exchange and equities-related products.
Halford also confirmed that Standard Chartered would look at the businesses rival Citi has put up for sale, although it was too early to decide which.
