StanChart Plans to Split Asia Into Singapore, Hong Kong Hubs
- Move intended to simplify bank’s network, capital structure
- Sale or spin-off may also be considered later: sources
The Standard Chartered Plc logo is illuminated at night atop the company's offices at the Forum building in the Central district of Hong Kong.
Photographer: Billy H.C. Kwok/Bloomberg
Standard Chartered Plc plans to create two new hubs for its Asian operations in Singapore and Hong Kong to simplify the emerging market lender’s extensive network and reduce costs, people familiar with the plan said.
The bank has drawn up plans to consolidate as many as 10 Southeast and South Asian countries -- potentially including Indonesia and India -- under a new Singapore subsidiary as soon as next year, said the people, who asked not to be identified as the details aren’t finalized. It’s intended to allow the bank to manage its assets and capital more efficiently and could potentially reduce the size of the emergency buffers regulators require the firm to maintain, one person said.