20th Jul 2015 05:37
LONDON (Alliance News) - Standard Chartered Chief Executive Bill Winters has appointed a new management team reporting directly to him and made changes to the bank's structure as he tries to improve performance and cut USD1.8 billion in costs by the end of 2017.
The changes are Winters' latest move in his effort to reinvigorate the FTSE 100 bank, which has seen pressure on earnings and a fall in its share price over the past two years. On succeeding Peter Sands as chief executive on June 10, Winters highlighted capital strength as one of his top priorities.
The new management team, which consists of 13 members, will be responsible for devising a plan by the end of the year to address the emerging markets banking group's performance, Standard Chartered said in a statement on Sunday.
Winters, who has in the past worked at JPMorgan Chase & Co's investment bank, is to take direct charge of Standard Chartered's client businesses from October 1, taking responsibility from deputy Mike Rees, who will work with the chief executive on formulating and executing strategy. Along with Chief Financial Officer Andy Halford, Rees will remain on the board as an executive director. The new organisational structure will be in place by January 1, the bank said.
"The group needs to kick-start performance, reduce its cost base and bureaucracy, improve accountability, and speed up decision making. The new structure will help achieve all of these critical objectives and will be in place as we communicate a comprehensive plan to address the group's performance by the year end," Winters said in a statement.
In a letter to the bank's employees, Winters said Standard Charted will manage local clients through a country or regional management structure, with global clients and businesses to be managed on a global basis.
The number of regional units at the bank will be halved to four, consisting of Greater China & North Asia, ASEAN & South Asia, Africa & Middle East, and Europe & Americas. Each geographical unit will have a different leader.
Its client businesses are Corporate & Institutional Banking, Commercial & Private Banking, and Retail Banking.
Winters wants "consistent delivery" of the bank's products, many of which are used across client segments and regions.
The CEO emphasised "clear accountability for bottom-line performance" for managers, the importance of risk management, compliance and conduct, as well as using technology to improve efficiency and productivity.
The changes that Winters wants to bring about will not change the bank's main regions of primary focus, those where it generates most of its profits, with Standard Chartered to remain primarily focused on Asia, Africa and the Middle East.
By Samuel Agini; [email protected]; @samuelagini
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