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Standard Chartered moves to cut $1.8bn in costs

By BusinessNews Staff on July 23, 2015

As the fall in commodity prices including crude oil continues to impact on banks’ profits globally, Standard Chartered Group says it has reviewed its organisational structure as part of efforts to deliver $1.8bn cut in costs by 2017.

Specifically, the United Kingdom-based lender said the review would improve accountability, speed up decision making, and reduce bureaucracy.

Consequently, Standard Chartered said it had appointed Mr. Bill Winters as its new Group Chief Executive Officer.

Winters, it said, would lead the new management to deliver a plan to address the future performance of the group by year end, and put in place the new structure.

According to the bank, the group’s new geographical structure will rationalise its eight existing regions into four new regional businesses.

It said Greater China and North Asia including Hong Kong, China, Korea, Japan and Taiwan would be led by Mr. Ben Hung; while ASEAN and South Asia which includes Singapore, Malaysia, Indonesia, India and Bangladesh would be led by Ajay Kanwal.

Also, Africa and Middle East, which includes Southern, West and East Africa, Pakistan and the United Arab Emirates will be led by Sunil Kaushal; while Europe and Americas, including the United Kingdom and the United States will be led by Tracy Clarke.

Standard Chartered said the new organisational structure would become effective from October 1, 2015, and would be fully in place by January 1, 2016. The group’s financial reporting will be based on the new structure from January 1, 2016.

The statement quoted Winters as saying, “The group needs to kick-start performance, reduce its cost base and bureaucracy, improve accountability, and speed up decision making.

“The new structure will help achieve all of these critical objectives and will be in place as we communicate a comprehensive plan to address the Group’s performance by the year end.”

He added, “I am working with a talented and experienced management team to create a bank that delivers strong returns and sustainable profitability.”

The bank said that effective October 1, Mr. Sunil Kaushal, who is currently its India CEO, would move to a new role as the Regional CEO, Africa & Middle East.

It said that a new CEO for India would be appointed and announced in due course.

The bank said that its current Chief Executive Officer for Africa, Diana Layfied, would be leaving the bank.

The statement noted that Layfield had been with the group for over 10 years in various senior management roles, and had in the last four years led the bank’s Africa business.

The statement said, “Layfield has through the years overseen strategic investments in Africa including capability enhancing acquisitions such as First Africa, a boutique M&A consultancy, and the Barclays Africa and Absa Bank South Africa custody business, serving to position Standard Chartered as one of the leading custody service providers in Africa.

“Throughout her tenure, Layfield’s dynamic leadership helped position the bank to make a tangible contribution to developing Africa’s capital markets, thereby entrenching the bank’s partnerships with governments and policy-makers across the region. Standard Chartered is now the official ratings advisor to five leading African governments, promoting regional investment potential and enabling markets to diversify their investor base, internationally.”

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