LONDON (REUTERS) - Standard Chartered said on Thursday (Sept 10) it would merge several of its businesses and reduce the number of top executives as the Asia- and Africa-focused bank seeks to trim costs and create a leaner business.
StanChart said it would merge its retail, private and business banking divisions together under the leadership of current Asean and South Asia chief executive officer Judy Hsu, who will continue to be based in Singapore.
The reshuffle will also bring together its two Asian units under Greater China and North Asia head Ben Hung, who will continue to be based in Hong Kong.
Ms Tracy Clarke, currently regional CEO of Europe and Americas, and head of the company's private bank, is to retire.
The changes will take effect at the end of the year.
With this shift, both the global business CEOs overseeing all the banks' business lines will be based in Singapore. Mr Simon Cooper, now the chief executive for corporate, commercial and institutional banking, is already based here.
Singapore remains a strategically important market for the group, a bank spokesman told The Straits Times on Thursday (Sept 10).
"Over the years as we expanded our presence in Singapore, we have also invested in upskilling our people's capabilities and skills as well as grown our workforce," she said.
Last month, the Monetary Authority of Singapore designated StanChart as the country's first Significantly Rooted Foreign Bank, reflecting the bank's substantial presence in the city-state.
The latest move sees group chief executive Bill Winters reducing the number of senior lieutenants under him as he tries to keep a lid on costs amid low interest rates, slowing economic growth and the effects of the Covid-19 pandemic.
Mr Winters said "the increased focus on connecting our Asian business will allow us to better serve our corporate and institutional clients as they develop their businesses across these dynamic markets".
"These changes will lead to expansion of the scope and responsibilities of several senior roles below the group's management team, improving management bench-strength and accelerating our pursuit of a more diverse, performance-orientated and innovative culture."
The move also merges StanChart's underperforming private bank back into the broader retail and business banking division.
StanChart has struggled for years to compete for the business of wealthy individuals in its target markets, with the unit making a loss of US$14 million (S$19 million) in 2018 and a profit of just US$94 million in 2019.
The group will still report its results according to the current structure for the remainder of this year.
Additional reporting by The Business Times, The Straits Times
