Standard Chartered has unveiled plans to secure £200 billion in new assets, capitalising on clients seeking to relocate businesses from China amidst potential tariff threats from president-elect Donald Trump. The FTSE 100 bank, with its strong Asian focus, is pursuing aggressive double-digit income growth in its wealth management division over the next five years.
Chief Executive of wealth and retail banking, Judy Hsu, outlined the bank’s strategic focus on expanding its portfolio of wealthy Chinese and Indian clients with offshore and cross-border assets. The looming spectre of trade wars and technological competition between the US and China has prompted businesses and high-net-worth individuals to reassess their positions.
The bank’s strategy involves a substantial £1.5 billion investment over five years in its wealth management operations. This investment will facilitate the recruitment of additional relationship managers and investment advisers across key financial hubs including Singapore, Hong Kong, and Dubai.
Standard Chartered’s performance metrics demonstrate robust growth, with assets under management from globally-facing wealthy Chinese and Indian clients increasing by approximately 40 per cent and 20 per cent respectively in the year to September’s end. The bank’s shares have shown remarkable strength, rising by 47 per cent this year, closing at 967.75 pence on the London Stock Exchange.
The strategic pivot mirrors similar moves by competitor HSBC, which has streamlined its retail operations while enhancing its wealth management services. This strategic realignment comes as Standard Chartered conducts a comprehensive review of its consumer services, including credit cards and small loans.
The bank’s recent quarterly results have reinforced confidence in this direction, with group pre-tax profits reaching £1.7 billion in the third quarter, surpassing City analysts’ expectations. This strong performance has led to revised guidance for adjusted income growth this year, now projected towards 10 per cent, up from the previous estimate of 7 per cent.
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