Standard Chartered scales back income growth target

Standard Chartered Shanghai Towers

Standard Chartered scaled back its income growth target for the next couple of years on Monday as slower economic growth and tougher regulations bite.

Reuters reports that the bank, which makes almost all its profit in Asia, Africa and the Middle East, also said it plans to get rid of smaller, underperforming businesses as part of a plan to sharpen its focus on profitability and improve its capital strength.

The bank said its long-term target was still to deliver income growth of at least 10% a year, but shorter-term growth would probably be 'high single digit'.

It kept its return on equity target of at least 14%, but said it may not achieve that in the short term either.

'We are unlikely to achieve double-digit income growth for the next couple of years', Finance Director Richard Meddings said at the start of an investor day for analysts.

'In a world where GDP (gross domestic product) growth may slow and regulation and competition are changing, we need to adapt our framework'.

To access the complete Reuters article hit the link below:

Standard Chartered cuts target as growth slows and regulation bites

UniCredit profit falls 40 percent in 'challenging' quarter

image: © Standard Chartered

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