Standard Chartered is focusing on growing its private banking assets by 50% to about $100 billion in three to five years and can hire dozens of bankers in Hong Kong and Singapore towards that aim, a senior executive of the lender said.
The moves present StanChart has significant growth ambitions for the private banking unit that had till recently scaled on the lender’s earnings, with its small size stoking consideration it would be put under review for possible divestment.
The lender will recruit 30-40 private bankers yearly within the next two to three years to add to its roughly 300 current relationship managers, and the bulk of the additions shall be in Hong Kong and Singapore, Didier von Daeniken StanChart’s Global Head informed.
With $65 billion worth of private banking belongings, London-headquartered StanChart is a small player in contrast with UBS which, as by Asian Private Banker information, had property price $2.3 trillion and Credit Suisse, with $770 billion last year.
The private banking enterprise accounted for merely 3.8% of StanChart’s complete profit before tax within the first half of this year.
StanChart’s private banking enterprise caters to wealthy individuals across Asia, Africa, the Middle East, and Europe, by booking centers in Singapore, Hong Kong, India, Dubai, London, and Jersey Island.
The unit had scaled on the group’s earnings recently as it sought to reposition the business to target wealthy people with at least $5 million in investable property amid severe competition in Asia, which brings in the majority of its revenue.
StanChart’s private banking business posted Underscoring a possible turnaround, a pre-tax profit of $100 million in the first half of 2019, compared with a loss of $5 million in the same period last year.