Standard Chartered PLC is a multinational financial services corporation, primarily through a subsidiary of Standard Chartered Bank. It was formed in 1969 as a result of the merger of Chartered Bank of India, Australia and China and Standard Bank of British South Africa. The headquarter is located in London (UK). However, the bank does not have branches in this country. The main regions of activity are the countries of Asia and Africa, primarily Hong Kong and Singapore. The Hong Kong subsidiary Standard Chartered Bank (Hong Kong) Limited is one of three banks issuing Hong Kong dollars.
In the Forbes Global 2000 list of largest public companies in 2018, Standard Chartered took 309th place (including 55th by assets, 468th by turnover, 404th by market capitalization and 883rd by net profit). In the list of largest banks in terms of assets, Standard Chartered Bank took 51st place at the end of 2017, and in fifth place in the list of largest banks in the UK. Since 2012, it has been one of the globally systemically important banks.
Standard Chartered Corporation operates through more than a thousand branches in 63 countries. Revenue (operating income) in 2017 amounted to $ 14.289 billion, assets - $ 663.5 billion. Main divisions:
- Corporate & Institutional Banking – servicing corporations and financial institutions, over 5300 clients in more than 50 countries of Asia, Africa and the Middle East; the main services of the division are working in financial markets, conducting transactions (about 2 million transactions per month, the largest bank in the world by this indicator), corporate financing, lending and portfolio management; revenue in 2017 amounted to $ 6.496 billion, assets - $ 293 billion.
- Retail Banking – banking services to individuals and small businesses in 60 cities in Asia, Africa and the Middle East, a total of 9 million customers; revenue in 2017 amounted to $ 4.834 billion, assets - $ 105 billion.
- Commercial Banking – financial services to 40 thousand medium-sized companies in 27 countries of Asia, Africa and the Middle East; revenue in 2017 amounted to $ 1.333 billion, assets - $ 32 billion.
- Private Banking – asset management and retail banking services to 7,000 wealthy individual clients in Asia, Africa, the Middle East and the UK; revenue in 2017 amounted to $ 500 million, assets - $ 13.5 billion.
- Central & Other Items – revenue in 2017 amounted to $ 1.126 billion, assets - $ 220 billion.
Chartered Bank of India, Australia and China
The story of Chartered Bank of India, Australia and China began in 1853 when Scot James Wilson (also known as the founder of The Economist magazine) received a royal concession from Queen Victoria to open a bank in Southeast Asia. In 1858, the first branches began to operate in Mumbai, Calcutta and Shanghai, the next year in Singapore and Hong Kong. From 1862, the bank began printing Hong Kong paper money, and from 1859 to 1890 it also issued paper money in Malaysia. The bank has been financing trade between Asia and Europe; the volume of this trade increased significantly after the opening of the Suez Canal in 1869. It mainly transported tea from China, coffee and rum from India and Java, tobacco and spices from the Philippines, as well as opium from India to China; over time, the cotton trade played an increasingly important role.
The great Kanto earthquake destroyed the bank's office in Yokohama, and some of its personnel died. In 1927, P&O Bank, the bank of the Peninsular and Oriental Steam Navigation Company with a network of branches in Asia and comprising the Indian Allahabad Bank, was purchased. During World War II, most branches of Chartered Bank of India, Australia and China ended up in Japanese-occupied territories. In 1948, Chartered Bank began operations in Bangladesh. In 1957, Eastern Bank (East Bank) was added to its structure, entering the Middle East market (Bahrain, Lebanon, Libya, Qatar, Oman, UAE); Also this year, Ionian Bank Cypriot branches were purchased. In 1959, with the participation of the Chartered Bank, an Iran-British bank was established (nationalized in 1981). In 1969, the Allahabad Bank, which remained independent as part of the Chartered Bank, was nationalized by the Government of India.
Standard Bank of British South Africa
Standard Bank of British South Africa was founded in 1862 by John Paterson in the Cape Province of South Africa. The bank played a significant role in financing diamond mining in Kimberley, and since 1885, gold mining in the Johannesburg area. About half of the gold mined in South Africa went through Standard Bank on its way to London. Over the years, the bank has significantly expanded its presence deep into Africa (in 1953 it had 600 branches), and the South African part of the branches was separated into a subsidiary, and in 1987 - into a separate bank, called Standard Bank. In 1965, the Bank of West Africa was absorbed, and Cameroon, Gambia, Ghana, Nigeria and Sierra Leone fell into the sphere of influence of Standard Bank. Bank of West Africa was founded at the end of the 19th century under the name Bank of British West Africa and played a significant role in the development of money circulation in the British colonies of West Africa, in particular, until 1953, acting as the central bank in Ghana.
The 1980s were a difficult period for Standard Chartered: in a number of major markets (Malaysia, Singapore, Hong Kong), an economic downturn began. In 1981, Standard Chartered tried to strengthen its position in the British market by merging with the Royal Bank of Scotland Group, but this deal was blocked by the British antitrust committee. Lloyds Bank decided to take advantage of the bank's financial situation in 1986 by attempting a hostile takeover, which Standard Chartered managed to repel with the help of three Asian financiers who bought up 35% of the bank's shares and thus prevented Lloyds Bank from collecting a controlling stake. In 1987, Standard Chartered became the last foreign bank to leave the Republic of South Africa, selling its stake in Standard Bank with a big loss. In 1988, the United Bank of Arizona and Union Banking group were sold, as well as some other non-core assets in Europe, the USA and Africa, and the number of employees was reduced. These measures enabled Standard Chartered to improve its financial position and continue to develop in its main markets. By the 1990s, it was represented in all countries of the Asia-Pacific region (except the DPRK): in 1983 a branch was opened in Macau, in 1985 in Taiwan, in 1990 in Vietnam, in 1992 in Cambodia and Iran, in 1995 - in Myanmar, in 1996 - in Laos. In 1998, the Peruvian bank Banco Exterior de Los Andes (Extebandes) was purchased, which, in addition to Peru, also operated in Venezuela and Colombia. In 1999, a branch was opened in Beijing, a financial market division was purchased from UBS, and a 75% stake in Thai Nakornthon Bank PLC was acquired.
In 2000, Standard Chartered acquired Grindlays Bank for $ 1.34 billion from Australia's Australia and New Zealand Banking Group, which increased the number of branches in India and Pakistan. In the same year, the Chase Manhattan Card Company (Chase Manhattan Bank credit card company) was bought for $ 1.32 billion. In 2004, a subsidiary of Standard Chartered Bank (Hong Kong) was registered in Hong Kong. In 2005, Korea First Bank, which became a division of Standard Chartered, was bought for $ 3.3 billion. In 2008, American Express Bank (a subsidiary of American Express Company, represented in 47 countries - it cost $ 1.1 billion), Yeahreum Mutual Savings Bank (South Korean savings bank), Asia Trust and Investment Corporation were acquired. In 2009, Cazenove Asia and First Africa Holdings were bought. In 2013, the presence in Africa was increased by the purchase of Absa Bank's depository business in South Africa.
After China established the international inter-bank payment system (Cross-Border Inter-Bank Payment System) in 2015, Standard Chartered became the main bank for settlements in this system and operations with the renminbi.