Standard Chartered PLC

Type	Public limited company
Traded as	LSE: STAN SEHK: 2888 NSE: STAN
Industry	Banking, Financial services
Predecessor(s)	Standard Bank Chartered Bank
Founded	1969 (London)
Headquarters	London, United Kingdom
Area served	Worldwide
Key people	John W. Peace[1] (Chairman of the Board) Peter A. Sands[1] (Group CEO)
Products	Credit cards, Consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management
Revenue	US$16.58 billion (2011)[2]
Operating income	US$7.72 billion (2011)[2]
Net income	US$4.93 billion (2011)[2]
Total assets	US$599 billion (2011)[2]
Total equity	US$40.71 billion (2011)[2]
Employees	86,865 (2011)[2]
Website	www.standardchartered.com

Standard Chartered PLC (LSE: STAN, SEHK: 2888, NSE: STAN) is a British multinational banking and financial services company headquartered in London, United Kingdom. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) across more than 70 countries and employs around 87,000 people. It is a universal bank with operations in consumer, corporate and institutional banking, and treasury services. Despite its UK base around 90% of its profits come from Africa, Asia and the Middle East.

Standard Chartered has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £33 billion as of 23 December 2011, the 13th-largest of any company with a primary listing on the London Stock Exchange.^[3] It has secondary listings on the Hong Kong Stock Exchange and the National Stock Exchange of India. Its largest shareholder is the Government of Singapore-owned Temasek Holdings.^[4][5][6]

Name[link]

The name Standard Chartered comes from the names of the two banks from which it was formed by merger in 1969 – The Chartered Bank of India, Australia and China, and Standard Bank of British South Africa.^[7]

History[link]

Chartered Bank[link]

The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal Charter by Queen Victoria in 1853.

Chartered opened its first branches in Mumbai, Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.^[7] The Bank started issuing banknotes of the Hong Kong dollar in 1862. 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.^[7]

Standard Bank[link]

The Standard Bank was a British bank founded in the Cape Province of South Africa in 1862 by another Scotsman, John Paterson.^[7] Having established a considerable number of branches, Standard 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.^[7] Half the output of the second largest gold field in the world passed through The Standard Bank on its way to London.

Standard expanded widely in Africa over the years, but from 1883 to 1962 was formally known as the Standard Bank of South Africa. In 1962 the bank changed its name to Standard Bank Limited, and the South African operations were formed into a separate subsidiary which took the parent bank's previous name, Standard Bank of South Africa Ltd.

1969 to 2000[link]

Standard Chartered Bank Building in Hong Kong

Both banks had acquired other smaller banks along the way and spread their networks further. In 1969, the banks decided to merge,^[7] 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.^[8] 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.

In 1987 Standard Chartered sold its remaining interests in the South African bank, and since then the Standard Bank Group has been a separate entity.

In 1992, scandal broke when banking regulators charged several employees of Standard Chartered in Mumbai with illegally diverting depositors’ funds to speculate in the stock market. Fines by Indian regulators and provisions for losses cost the bank almost 350 million pounds, a third of its capital.

Scandal erupted again in 1994, when the Sunday Times of London wrote that an executive in the bank’s metals-trading arm had bribed officials in Malaysia and the Philippines in order to win business. The bank, in a statement on 18 July 1994, said there were “discrepancies in expense claims” that “included gifts to individuals in certain countries to facilitate business, a practice contrary to bank rules.'

In 1997, Standard Chartered sold its metals trading arm to Toronto-based Scotiabank for US$26 million. In 1994, the Hong Kong Securities and Futures Commission found that Standard Chartered’s Asian investment bank had illegally helped to artificially support the price of new shares they had underwritten for six companies from July 1991 to March 1993. The bank admitted the offense, apologized and reorganized its brokerage units. The commission banned the bank from underwriting IPOs in Hong Kong for nine months. Standard Chartered’s Asian investment banking operations never recovered, and in 2000 the bank closed them down.^[9]

The bank fully recovered in late '90s, during this time, the bank sold off holdings in continental Europe and the Americas, sold the headquarters building (lease-back) and branch properties in Hong Kong. In 2000, Standard Chartered acquired Grindlays Bank & Chase Manhattan Bank Hong Kong retail banking business. The ethics issues and financial losses triggered turmoil in Standard Chartered’s London executive suite. The bank went through three CEOs in three years: Malcolm Williamson was replaced in 1998 by Rana Talwar, who was in turn unseated by Mervyn Davies in 2001. By the time Davies took over, his predecessors had systematically sold off the bank’s holdings in continental Europe and the Americas.

Former CEO Talwar traces Standard Chartered’s troubles over the years to its failure to hire local talent. The Indian-born Citigroup Inc. veteran became the bank’s first non-British CEO when he was appointed in 1998. ^[9]

2000 to present[link]

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.^[10] 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.

In 2004, Standard Chartered Bank and Astra International (An Indonesian conglomerate, a subsidiary of Jardine Matheson Group) took over PermataBank and in 2006, both shareholders increased their joint ownership to 89.01%. With 276 branches and 549 ATMs in 55 cities throughout Indonesia, PermataBank has the second largest branch network in Standard Chartered organization.^[11]

On 15 April 2005, the bank acquired Korea First Bank, beating HSBC in the bid.^[12] 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).^[13] 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.

Standard Chartered Bank China in Guangzhou Tianhe.

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 US$511 million.^[14] 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.^[15] 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.^[16] On 23 August 2007 Standard Chartered entered into an agreement to buy a 49 percent share of an Indian brokerage firm (UTI Securities) for US$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.^[17] 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.^{[18][19][20][21][22]}

Standard Chartered Bank Tower in Pudong, Shanghai, China

On 13 November 2008, Standard Chartered PLC announced that its subsidiary, Standard Chartered Bank (Hong Kong) Limited, had entered into an agreement to acquire 100 per cent of Cazenove Asia Limited, a leading Asian equity capital markets, corporate finance and institutional brokerage business, from JPMorgan Cazenove.^[23]

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 US$7.77 billion 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.^[24]

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.^[25]

On 13 May 2010, Standard Chartered PLC launched the first-ever Indian Depository Receipt “IDR” offer ^[26] On 17 June 2010, Standard Chartered Bank And Agricultural Bank of China Strengthen Strategic Partnership. Hong Kong has been identified as a potential pilot region for the two banks’ co-operation journey. Standard Chartered’s and ABC’s aim is to co-operate to provide their corporate and individual customers with world class financial markets products. A joint co-operation committee will be formed by both banks to drive the strategic direction of the partnership. The committee will be co-chaired by Mr Peter Sands, CEO of Standard Chartered, and Mr Zhang Yun, President of ABC. ^[27]

In December 2010 Standard Chartered was recognised as the Global Bank of the Year in The Banker's Bank of the Year 2010 awards.^[28]

Standard Chartered Breeze[link]

Standard Chartered Breeze is a mobile banking application for the iPhone & iPad that can also be used on the computer. It is largely similar to the online banking services offered by other banks, with the exception of its function to issue electronic bank cheques. Launched in summer 2010 and aggressively marketed, the reviews have been generally positive. In addition, it has attracted an uncommon amount of attention due to many innovative marketing strategies it used to promote its product, mostly focussing on social media. Standard Chartered Breeze organised a blogger's meet for bloggers to preview Breeze, and it's Twitter campaign to give away a free iPad was extremely successful. To date, Standard Chartered Breeze's twitter page has more than three times the followers than their closest competitor.^[29]

Breeze is currently only available in parts of Asia, primarily Singapore.

Senior management[link]

Peter Sands is the current chief executive of Standard Chartered. His total annual reward package is US$4,142,000, consisting of US$1,516,000 salary and a bonus of up to US$2,626,000.^[30]

Sponsorship[link]

In September 2009 it was announced that Standard Chartered had agreed to become the main sponsor of Liverpool Football Club for the period between July 2010 and the end of the 2013-14 football season.^[31][32] The deal was reported to have a total value of £80 million.^[31][32]

Notable employees[link]

John Major, who served as prime minister of the United Kingdom from 1990 to 1997, was employed by Standard Chartered from May 1965, when he joined them as an executive.^[33] 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[link]

Companies portal

• List of banks in the United Kingdom
• Banknotes of the Hong Kong dollar

References[link]

External links[link]

Wikimedia Commons has media related to: Standard Chartered Bank

• Official website

v t e Standard Chartered Divisions and subsidiaries Current Standard Chartered Bangladesh Standard Chartered Ghana Standard Chartered Hong Kong Standard Chartered Korea Standard Chartered Nepal Standard Chartered Pakistan Standard Chartered Thailand Standard Chartered Uganda Standard Chartered Zambia Standard Chartered Zimbabwe Former American Express Bank1 Grindlays Bank1 Hsinchu International Bank1 Standard Chartered Bank of Canada2 Union Bank1 Predecessors Chartered Bank of India, Australia and China Colesberg Bank P&O Bank Standard Bank Places 6 Battery Road Standard Chartered Bank Building People Mervyn Davies Peter Sands James Wilson Other The Greatest Race on Earth Hong Kong Marathon Jersey Marathon Mumbai Marathon Seeing is Believing Singapore Marathon Singapore Sevens 1Now integrated into other Standard Chartered divisions or business groupings 2Sold Category ·  Commons

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