Summary of Standard Chartered Conference Call (November 19, 2025) Company Overview - Company: Standard Chartered (SEHK: 02888) - CFO: Diego, who joined in January 2024 - Stock Performance: Stock price increased by approximately 150% since Diego's appointment, outperforming the SX7P index which rose by 110% [1][2][3] Key Business Segments and Performance Wealth Management - Wealth Management Growth: Significant growth driven by the rise of the middle class in Asia and increasing sophistication of investors [5][6] - Record Net New Money: Attracted $15 billion in Q2 and $13 billion in Q3, with a year-to-date growth of 15% in net new money flows and 25% growth in wealth income [7][10] - Target for Affluent Net New Money: Aiming for $200 billion over five years, averaging $10 billion per quarter [12] - Investment in Wealth Management: Plans to invest $1.5 billion, focusing on hiring relationship managers and enhancing technology [13] Cross-Border Income - Growth Rate: Achieved a 9% CAGR in cross-border income since 2019 [19] - Competitive Advantage: Strong network presence in ASEAN and Africa, with a focus on capital flows rather than trade [16][18] Financial Markets Business - Risk Management Focus: 70% of the markets business is dedicated to risk management, growing at 10% per annum [21][23] - Integration with Banking: The flow business is consistent and programmatic, while episodic business varies with market conditions [24] Strategic Insights - Market Positioning: Standard Chartered is focused on affluent customers ($1 million-$10 million), which are cheaper to acquire and serve, leading to high loyalty [9] - Response to Market Volatility: The bank has shown resilience during volatile times, with strong performance in both banking and markets businesses [26][27] - Digital Assets Strategy: Actively involved in digital banking and assets, including stablecoins and tokenized deposits, positioning itself as a central player in the digital asset revolution [35][36] Regional Focus and Turnaround Strategies - UAE as a Growth Hub: The UAE has become the third-largest wealth management hub for Standard Chartered, with a focus on attracting high-net-worth individuals [46][47] - Korea and India: Plans to pivot towards wealth management in Korea and India, with new wealth centers established [48][49][50] Financial Performance and Projections - Return on Tangible Equity (ROTE): Achieved ROTE target for 2026 ahead of schedule, with projections for continued growth [28][29] - Cost Management: The "Fit for Growth" program aims to optimize costs while supporting growth, with a focus on maintaining a cost-conscious approach [62][63] Risks and Challenges - Market Recession Impact: A potential market recession could negatively affect wealth management performance, but the bank remains optimistic about its diversified clientele [75][77] Conclusion - Outlook: Standard Chartered is well-positioned for future growth, with a strong focus on wealth management, digital assets, and cross-border income, while maintaining a disciplined approach to cost management and capital allocation [80][81]
Standard Chartered (SEHK:02888) Conference Transcript