Type | Public LSE: STAN SEHK: 2888 OTCBB: SCBFF |
---|---|
Industry | Banking Financial services |
Area served | Worldwide |
Key people | John W. Peace (Chairman of the Board) Peter A. Sands (CEO) |
Products | Finance and insurance Consumer Banking Corporate Banking Investment Banking Investment Management Private Banking Private Equity Mortgage loans Credit Cards |
Revenue | ▲ $15.184 billion (2009)[1] |
Operating income | ▲ $5.151 billion (2009)[1] |
Net income | ▲ $3.477 billion (2009)[1] |
Total assets | ▲ $436.653 billion (2009)[1] |
Total equity | ▲ $27.930 billion (2009)[1] |
Employees | 80,000 (2010) |
Website | StandardChartered.com or SC.com |
Standard Chartered PLC (LSE: STAN, SEHK: 2888, OTCBB: SCBFF) is a British financial services company headquartered in London, England with operations in more than seventy countries. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) and employs 80,000 people.
Despite its British base, it has few customers in the United Kingdom and around 90% of its profits come from Asia, Africa, and the Middle East. Because the bank's history is entwined with the development of the British Empire, its operations lie predominantly in former British colonies, though over the past two decades it has expanded into countries that have historically had little British influence. It aims to provide a safe regulatory bridge between these developing economies.
It now focuses on consumer, corporate, and institutional banking, and on the provision of treasury services—areas in which the Group had particular strength and expertise.
Standard Chartered have recently signed a four-year sponsorship deal with the football club Liverpool F.C, which started on 1 July 2010.
Standard Chartered is listed on the London Stock Exchange, Hong Kong Stock Exchange and the Indian Stock Exchanges and is a constituent of the FTSE 100 Index. Its largest shareholder is Temasek Holdings.[2].
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History
The early years
The name Standard Chartered comes from the two original banks from which it was founded and which merged in 1969 — The Chartered Bank of India, Australia and China, and The Standard Bank of British South Africa.[3]
The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal Charter by Queen Victoria in 1853, while The Standard Bank was founded in the Cape Province of South Africa in 1862 by another Scotsman John Paterson.[3] Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from the East to Europe.
In those early years, both banks prospered. Standard Chartered Bank has a major branch in Kolkata.</ref> Chartered opened its first branches in Mumbai, Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.[3] With the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871, Chartered was well placed to expand and develop its business.[3]
In South Africa, Standard, having established a considerable number of branches, was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885.[3] Half the output of the second largest gold field in the world passed through The Standard Bank on its way to London.
Both banks – at that time still quite separate companies – survived the First World War and the Depression, but were directly affected by the wider conflict of the Second World War in terms of loss of business and closure of branches. There were also longer term effects for both banks as countries in Asia and Africa gained their independence in the ‘40s till ‘60s.
Each had acquired other small banks along the way and spread their networks further. In 1969, the banks decided to merge,[3] and to counterbalance their existing network by expanding in Europe and the United States, while continuing their expansion in their traditional markets in Asia and Africa.
In 1986 Lloyds Bank of the United Kingdom made a hostile takeover bid for the Group.[4]. The bid was defeated however it spurred Standard Chartered into a period of change, including a series of divestments notably in the United States and South Africa.
Recent alliances and developments
In 2000, Standard Chartered acquired Grindlays Bank from ANZ Bank, increasing its presence in private banking and further expanding its operations in India and Pakistan.[5] Standard Chartered retained Grindlays' private banking operations in London and Luxembourg and the subsidiary in Jersey, all of which it integrated into its own private bank. This now serves high net worth customers in Hong Kong, Dubai, and Johannesburg under the name Standard Chartered Grindlays Offshore Financial Services. In India, Standard Chartered integrated most of Grindlays' operations, making Standard Chartered the largest foreign bank in the country.
On 15 April 2005, the bank acquired Korea First Bank, beating HSBC in the bid.[6] Since then the bank has rebranded the branches as SC First Bank.
Standard Chartered completed the integration of its Bangkok branch and Standard Chartered Nakornthon Bank in October, renaming the new entity Standard Chartered Bank (Thailand).[7] Standard Chartered also formed strategic alliances with Fleming Family & Partners to expand private wealth management in Asia and the Middle East, and acquired stakes in ACB Vietnam, Travelex, American Express Bank in Bangladesh and Bohai Bank in China.
On 9 August 2006 Standard Chartered announced that it had acquired an 81% shareholding in the Union Bank of Pakistan in a deal ultimately worth $511 million.[8] This deal represented the first acquisition by a foreign firm of a Pakistani bank and the merged bank, Standard Chartered Bank (Pakistan), is now Pakistan's sixth largest bank.
On 22 October 2006 Standard Chartered announced that it had received tenders for more than 51 per cent of the issued share capital of Hsinchu International Bank (“Hsinchu”), established in 1948 in Hsinchu city in Taiwan.[9] Standard Chartered, which had first entered Taiwan in 1985, acquired majority ownership of the bank. Prior to the merger, Hsinchu was Taiwan's seventh largest private sector bank by loans and deposits as at 30 June 2006, but had suffered extensive losses on defaulted credit card debt. Standard Chartered merged its existing three branches with Hsinchu's 83, and then delisted Hsinchu International Bank, changing the bank's name to Standard Chartered Bank (Taiwan) Limited. Today Standard Chartered is the largest foreign bank in Taiwan in terms of branch network.
In 2007, Standard Chartered opened its Private Banking global headquarters in Singapore.[10]
On 23 August 2007 Standard Chartered entered into an agreement to buy a 49 percent share of an Indian brokerage firm (UTI Securities) for $36 million in cash from Securities Trading Corporation of India Ltd., with the option to raise its stake to 75 percent in 2008 and, if both partners agree, to 100 percent by 2010.[11] UTI Securities offers brokering, wealth management and investment banking services across 60 Indian cities.
On 29 February 2008, Standard Chartered PLC announced it had received all the required approvals leading to the completion of its acquisition of American Express Bank Ltd (AEB) from the American Express Company (AXP). The total cash consideration for the acquisition is US$823 million.[12]
On 12 September 2009, The Times newspaper in the United Kingdom reported that Standard Chartered had signed a record equaling £20million a season sponsorship deal with Liverpool FC to commence at the start of the 2010/2011 English Premier League season and last for four years[13], in a deal equally the record amount set by Manchester United's sponsorship deal with insurance giant Aon. Liverpool football club announced on the club's official website on 14 September 2009 that Standard Chartered bank will be the new shirt sponsor starting from 1 July 2010 to 2014, ending their 18-year sponsorship by Carlsberg Group.
On 27 November 2009, Dow Jones Financial News reported the city of Dubai will restructure its largest corporate entity. Amongst international banks, Standard Chartered has one of the largest loan portfolios in the Dubai market and the UAE as a whole, estimated to be $7.77bn in total. This amounts to 4.2% of Standard Chartered's total loans outstanding. Other impacted banks included HSBC, Barclays, and RBS. However, Standard Chartered said that any impairment arising from this exposure would not be material [14].
Standard Chartered announced an agreement on 27 April 2010 to buy the African custody business from Barclays PLC. This was to provide the bank with custody capabilities in its markets across Africa.[15]
Senior management
Peter Sands is the chief executive of Standard Chartered Bank. His total annual reward package is $4,142,000, consisting of $1,516,000 salary and a bonus of up to $2,626,000.[16]
Notable employees past and present
John Major, who served as prime minister of the United Kingdom from 1990 to 1997, was employed by the bank from May 1965, when he joined them as an executive. He was transferred to Nigeria in 1967, and worked for the bank at home and abroad until he was elected to parliament at the 1979 general election as Conservative Party Member of Parliament (MP) for Huntingdon in Cambridgeshire.
See also
- Chartered Bank of India, Australia and China
- List of banks in the United Kingdom
- Standard Chartered's Next Generation Internet and Mobile Banking Service, Breeze
References
- ^ a b c d e Preliminary Reults 2009
- ^ Temasek Raises Bet on Financial Stocks With StanChart
- ^ a b c d e f Standard Chartered Bank History
- ^ "Offer sweetened by Lloyds Bank". The New York Times. 28 June 1986. http://query.nytimes.com/gst/fullpage.html?res=9A0DE1DF113DF93BA15755C0A960948260. Retrieved 2 May 2010.
- ^ ANZ sells Grindlays for $1.3bn
- ^ Standard Chartered buys Korea First Bank
- ^ Standard Chartered to Merge Its Branch with Local Subsidiary in Thailand
- ^ Standard Chartered to buy 80.86% of Pakistan's Union Bank
- ^ Standard Chartered to buy Hsinchu
- ^ Standard Chartered sets up private banking HQ in Singapore
- ^ Standard Chartered to buy 49% of UTI Securities
- ^ Clark, Andrew (18 September 2007). "Standard Chartered buys American Express Bank". The Guardian (London). http://www.guardian.co.uk/business/2007/sep/18/9. Retrieved 2 May 2010.
- ^ Liverpool’s £80m shirt deal equals biggest ever
- ^ Lender says no material impairment from Dubai
- ^ Press release[1]
- ^ "Peter Sands: Executive Profile & Biography". BusinessWeek. McGraw-Hill. http://investing.businessweek.com/research/stocks/people/person.asp?personId=8307391&ric=STAN.L. Retrieved 2009-08-10.
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