Standard Chartered PLC says it is restructuring the Group to improve accountability, speed up decision making, and reduce bureaucracy.
“The new structure would play a key part in delivering the $1.8 billion of cost savings by the end of 2017,” Standard Chartered said in a statement posted on its website.
The Group has also announced a new management team led by Bill Winters, Group Chief Executive.
The team, according to Standard Chartered, would deliver a plan to address the future performance of the Group by the year end and put in place the new structure.
“The simplified organisational structure would be phased in from October 1, 2015, and would be fully in place by January 1, 2016.
“The Group’s financial reporting would be based on the new structure from January 1, 2016,” it said.
The bank said the Group’s new geographical structure would rationalise the eight existing regions into four new regional businesses.
“These are Greater China and North Asia, including Hong Kong, China, Korea, Japan, and Taiwan, ASEAN and South Asia, which includes Singapore, Malaysia, Indonesia, India and Bangladesh, Africa and Middle East, which includes Southern, West and East Africa, Pakistan and the UAE and the Europe and Americas, including the UK and the US,” said the bank.
As per the new geographical structure, Africa would be combined with the Middle East as one region and would be led by Sunil Kaushal, who is currently India CEO, effective October 1, 2015.
A new CEO for India would be appointed and announced in due course.
Commenting, Bill Winters, Group Chief Executive said: “The Group needs to kick-start performance, reduce its cost base and bureaucracy, improve accountability, and speed up decision making.”
He said the new structure would help achieve all of these critical objectives and would be in place as we communicate a comprehensive plan to address the Group’s performance by the year end.
“I am working with a talented and experienced Management Team to create a bank that delivers strong returns and sustainable profitability,” he said.
The Group’s current structure of three client businesses supported by five product groups would be simplified, with each product now reporting into the client segment with which it has the most relevant connection.
Corporate & Institutional Banking (C&IB) would include Transaction Banking, Corporate Finance and Financial Markets, and would be led by Mark Dowie; Commercial and Private Banking would include Wealth Management and would be led by Anna Marrs; and Retail Banking would include Retail Products and will be led by Karen Fawcett.
C&IB would operate as a global business. Retail Banking and Commercial Banking would be run on a country basis with regional oversight, with client and product strategy delivered by smaller and more efficient central teams under Karen Fawcett and Anna Marrs.
Standard Chartered is a leading international banking group, with more than 90,000 employees and a 150-year history in some of the world’s most dynamic markets.