Standard Chartered Group anticipates to deliver 10 percent return on tangible equity and generate significant surplus capital by 2021, thus improving the bank business operations in Africa, Asia and Middle East.
The group announced that the refreshed priorities focus on investing to accelerate growth in the group’s differentiated network and affluent client businesses, optimizing performance in lower-returning markets and building on existing digital credentials to innovate.
“These actions will position standard Chartered as the leading bank for clients based or doing business in Asia, Africa and Middle East,” In its year-end December 2018 results, the group recorded six percent increase in profit before tax to $2,5 billion, while the operating income increased by five percent $15 billion.
Commenting on the results, Standard Chartered Group CEO, Bill Winters said they have made tremendous progress securing the foundations since 2015. “Our refreshed priorities will help realize the true value of the franchise. We will measure this not only in monetary terms with double digit equity returns and significant shareholder distributions targeted by 2021,” said Winters, adding that they are determined to drive commerce and help their clients achieve prosperity.
Through the new priorities, Winters said they intend to distribute to shareholders, surplus capital that is not deployed to fund additional growth. The company also targets income compound growth rate at five to seven percent. “We are cautiously optimistic on the global macroeconomic environment but the range of possible outcomes is wider than it has been in a long time.”
Considers Africa market lucrative
Opened first digital bank in Africa
Bill Winters, the group Chief Executive Officer of Standard Chartered Bank, has allayed customers’ fears, saying unlike his competitors, the bank will not close shop in Botswana or the African continent.
Winters was in Botswana this week to join his local board members, banking staff, clients and the public in celebrating the bank’s 120 years of operation in the country. The glamorous celebrations were held at Gaborone International Convention Centre (GICC).
Speaking to BG News on the sidelines of the celebrations and responding to this publication’s question on whether his bank will follow Barclays’ lead and pull out of Africa, Winters said: “The idea of Standard Chartered Bank leaving Africa does not cross my mind”.
He said they made it clear two years ago that they are committed to Africa. “We have a great business in Africa, we have long history having started 150 years ago,” he said.
As for accusations that the bank always lags behind in initiatives that could benefit Botswana, Winters promised that they certainly will come up with initiatives to boost local businesses both in Botswana and the African continent.
He said they always place Africa as a top priority when they discuss global investments whether in digital banking, applications or particular products. “There is no individual market in Africa that is as big for ourselves as the market in Hongkong, Singapore or India, but Africa is as important as any region that we have. It is growing really fast and we have real advantage, we are now rolling our projects in Africa.”
He said they are building their first purely digital bank in Cote de I’voire. It is currently being tested and will later be rolled out to the rest of Africa. “So I do not know about other banks, but for us Africa comes first”.
Asked when his bank will appoint a substantive Chief Executive Officer in Botswana, Winters said, “That is a complicated process, I wish I could say, but I am sure we will have resolution before too long”.
The bank is currently led by Mpho Masupe as acting CEO following the departure of Moathudi Lekaukau who resigned his position early this year. Without doubt the bank is making huge profits, Board chairman Professor Bojosi Othugile wrote in the group’s 2016 annual report that ‘outlook for 2017 is positive, the balance sheet is strong and the business segments have a good pipeline for conversion in 2017’.
Gobe Matenge, 91, was this week Monday honoured by Standard Chartered Bank for being the first Motswana to open an account with the bank and maintain it for 64 years.
He opened the account on 30th July 1953 in Francistown. Matenge was honoured at a colourful event held at the GICC where the bank celebrated its 120 years of operating in Botswana. It was attended by the crème de la crème of the society, amongst them Bank of Botswana governor Moses Pelaelo and Standard Chartered Bank Group CEO, Bill Winters.
Matenge was born in February 1926 and started his career in 1946 with Monarch mines and later joined the public sector where he contributed immensely to the development of this country.
He has held several positions including PS in the then labour and home affairs ministry.
Mantenge, was honoured togetherwith Haskins and Sons company.