StanChart completes 2-year restructuring and sets sights on expansion
Staff numbers in Greater China, North Asian have been cut 18pc and overall expenses are 6pc down, as non-profitable units sold or closed
Standard Chartered has completed a 2-year restructuring process, according to regional chief executive Ben Hung Pi-cheng, which has seen the successful sell-off or closure of a number of non-profitable units.
In an interview with South China Morning Post, Hung insisted it is now in a strong position to look at expansion, with the focus on RMB-denominated services and financing, and lending involved in the “Belt and Road Initiative” – the Chinese government’s planned international infrastructure building project, covering some 65 nations stretching from Asia to Europe, along the old silk trading routes.
“This major restructuring has been aimed at cutting out units which were not profitable, allowing us to relocate our resources to what we are good at.
“This has included the shut down of our equities business, and sale of consumer finance and MPF units,” he said.
Its stock broking, equity research, and equity listing desks worldwide were shut in January 2015, and the MPF business sold that year to insurer Manulife. In December 2014 it also sold its consumer finance unit PrimeCredit to a consortium led by China Travel Financial Holdings.
Hung said that as a result, the leaner bank has cut its exposure to loans to the oil and gas industry, where it had taken a big hit due to falling prices of commodities.