Standard Chartered has dropped target to achieve double-digit growth in income each year due to tougher regulatory and economic environment.
The bank, which outlined its new strategic plan at an investor day, said it will now target annual revenue growth of roughly 7% to 9% for the next couple of years from at least 10%, as its longer-term ambitions are hindered by problems in its South Korea business and rising capital requirements.
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However, Peter Sands, chief executive of the bank, assured investors that earnings per share will continue to increase at a double-digit percentage rate.
The bank’s new strategic plan involves pulling back from much of the consumer finance operations from less-profitable markets.
"There are pieces of our portfolio, whether very small geographies, or businesses that lack strategic synergies with other parts of the bank, that we are evaluating very carefully," Sands said.
Apart from slowdown across developing economies, the Asia-focussed bank has encountered more specific problems, particularly in South Korea and India.
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By GlobalDataThe bank wrote down the value of its South Korea business by $1 billion in the first half as bad loans soared from a government program that lets households restructure their debts with banks.
In India, Standard Chartered is planning to pay more attention to its wealth management and cash management businesses.
The bank has already closed a wealth management operation in Japan and is exiting consumer banking in Lebanon.
