Given the challenging global economic climate and evolving regulatory regime for banks, Standard Bank Group’s Corporate & Investment Banking business (CIB) is continuing to right size its international operations in a responsible and deliberate manner.
As part of this process, CIB will be driving higher levels of efficiency in both its front and back offices, and is planning to scale back certain product lines and geographies. These actions will be focused on CIB’s geographic footprint outside Africa excluding Latin America.
Says David Munro, Chief Executive, CIB: “Our strategic positioning remains strong. However we continue to seek ways to simplify our business, reduce our cost base and improve profitability while maintaining our ability to service our targeted client base.”
CIB plans to take action in respect of all aspects of the cost base in its international operations so as to secure a sustainable reduction in costs of approximately $100m.
“In order to achieve this objective there is, regrettably, the risk that we will be unable to continue to provide employment for all CIB International employees. This is likely to result in redundancies,” said Mr Munro.
“At this stage, in London we envisage that this will potentially eliminate between 10% and 15% of Standard Bank’s approximately 900 permanent roles. The process for communicating the impact to our staff in our other jurisdictions outside Africa will be completed next week,” said Ms Jenny Knott, Chief Executive, Standard Bank Plc.
“We recognise that these are difficult and unsettling times so we aim to have this process completed as quickly as possible, but in the meantime we will continue providing our clients with the exceptional service and professionalism that they have come to expect from us,” said Mr Munro.