Standard Chartered plc “the Group” has disclosed a simplification of its organisational structure that will improve accountability, speed up decision making, reduce bureaucracy and play a key part in delivering the previously announced US$1.8bn of cost savings by the end of 2017.
The Group announces a new Management Team led by Bill Winters, Group Chief Executive. The Management Team will deliver a plan to address the future performance of the Group by the year end, and put in place the new structure.
The Group’s new geographical structure will rationalise the eight existing regions into four new regional businesses namely: Greater China & North Asia, including Hong Kong, China, Korea, Japan, and Taiwan, led by Ben Hung; ASEAN & South Asia, which includes Singapore, Malaysia, Indonesia, India and Bangladesh, led by Ajay Kanwal; Africa & Middle East, which includes Southern, West and East Africa, Pakistan and the UAE, led by Sunil Kaushal; Europe & Americas, including the UK and the US, led by Tracy Clarke. The simplified organisational structure will be phased in from 1 October, 2015, and will be fully in place by 1 January, 2016. The Group’s financial reporting will be based on the new structure from 1 January, 2016. (A full organisation chart can be found here).
Speaking on the new regional and business structure, Bill Winters, Group Chief Executive commented that;
“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 added, “I am working with a talented and experienced Management Team to create a bank that delivers strong returns and sustainable profitability.”
The Group also announces that effective from 1 October 2015, Sunil Kaushal, currently India CEO, will move to a new role as Regional CEO, Africa & Middle East. A new CEO for India will be appointed and announced in due course. This role will however report to Ajay Kanwal from 1 October 2015.
In continuing with the announcement it is stated that Diana Layfield, current Chief Executive Officer Africa, will be leaving the Bank. Layfield has been with the Group for over 10 years in various senior management roles, and in the last 4 years has successfully led the Bank’s Africa business which has benefited from both organic and inorganic growth.
Layfield has through the years, overseen strategic investments in Africa including capability enhancing acquisitions such as First Africa, a boutique M&A consultancy, and the Barclays Africa and Absa Bank South Africa custody business, serving to position Standard Chartered as one of the leading custody service providers in Africa.
Throughout her tenure, Layfield dynamic leadership helped position the Bank to make a tangible contribution to developing Africa’s capital markets, thereby entrenching the Bank’s partnerships with governments and policy makers across the region. Standard Chartered is now the official ratings advisor to 5 leading African governments, promoting regional investment potential and enabling markets to diversify their investor base, internationally.
In underscoring the bank’s leading role in infrastructure development, Layfield also led Standard Chartered’s $5billion commitment to President Obama’s Power Africa partnership – a collective campaign which aims to bring new power to over 20 million businesses and African households by the end of 2018.
In addition to her strategic success, Layfield leaves Africa successfully positioned as one of the Group’s strategic growth regions, with income up 15% since 2012 to over $1.8billion at the end of last year. Standard Chartered supports its clients across 38 African markets.
The announcement also makes known that the Group’s current structure of three client businesses supported by five product groups will be simplified, with each product now reporting into the client segment with which it has the most relevant connection. Corporate & Institutional Banking “C&IB” will include Transaction Banking, Corporate Finance and Financial Markets, and will be led by Mark Dowie. Commercial & Private Banking will include Wealth Management and will be led by Anna Marrs. Retail Banking will include Retail Products and will be led by Karen Fawcett.
Whilst C&IB will operate as a global business, Retail Banking and Commercial Banking will 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 respectively.
Iheanyi Nwachukwu
