Standard Chartered has grown its yearly profit by nearly a fifth as the bank benefited from activity in international markets and its wealth division, and hiked its boss’s pay by nearly 50%. The UK-listed bank, which makes most of its money in Asia, the Middle East and Africa, said the stronger financial performance was achieved despite a year of global “disruption” and amid the looming threat of tariffs.
It reported a pre-tax profit of six billion US dollars (£4.7 billion) for 2024, an 18% jump on the 5.1 billion dollars (£4 billion) made the previous year. A record 19.7 billion dollars (£15.6 billion) of income was driven by stronger activity within its wealth division – which caters to high-net-worth customers – and growth in its global markets and global banking businesses.
The bank said it prioritised investment in high-growth markets and sharpened its focus on serving affluent and international banking customers. It previously said it was considering selling a number of its banking businesses in parts of Africa. Standard Chartered’s chairman Jose Vinals said the improved financial performance was achieved in a year of major changes, “and in some cases disruption”, with many countries electing new leaders in 2024.
Looking to the year ahead, chief executive Bill Winters said “looser financial conditions and expansionary fiscal policy may be partly offset by protectionist trade policies and interest rates that remain high”. It comes as US President Donald Trump has raised the threat of increasing tariffs on goods entering the nation, including plans to hike tax on steel imports.
Standard Chartered said it was working to identify which of its customers may be affected by a new wave of tariffs. Meanwhile, the bank’s annual report revealed Mr Winters took home a pay packet worth £10.7 million last year, made up of his salary and benefits, annual bonus and long-term incentives.
This was 46% more than he earned the previous year, with his long-term incentives bolstered by the company’s stronger financial performance and higher share price. However, Standard Chartered said it wants to significantly reduce the salaries of its executive directors this year, including a 40% cut for Mr Winters.
This is because he will be given the opportunity to earn up to £13.1 million based on how well he meets performance targets. It echoes similar changes announced by Barclays and HSBC who are also asking shareholders to approve new pay deals, which they say more closely link directors’ pay to their performance.
