Standard Chartered Bank

Standard Chartered Bank

Overview
Standard Chartered PLC is a multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...

 financial services company headquartered in London, United Kingdom 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 around 80,000 people.

It is a universal bank
Universal bank
A universal bank participates in many kinds of banking activities and is both a commercial bank and an investment bank.The concept is most relevant in the United Kingdom and the United States, where historically there was a distinction drawn between pure investment banks and commercial banks. In...

 and has operations in consumer, corporate and institutional banking and treasury services.
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Encyclopedia
Standard Chartered PLC is a multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...

 financial services company headquartered in London, United Kingdom 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 around 80,000 people.

It is a universal bank
Universal bank
A universal bank participates in many kinds of banking activities and is both a commercial bank and an investment bank.The concept is most relevant in the United Kingdom and the United States, where historically there was a distinction drawn between pure investment banks and commercial banks. In...

 and has operations in consumer, corporate and institutional banking and treasury services. Despite its British base around 90% of its profits come from Africa, Asia and the Middle East.

Standard Chartered has its primary listing on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...

 and is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....

. It has secondary listings on the Hong Kong Stock Exchange
Hong Kong Stock Exchange
The Hong Kong Stock Exchange is a stock exchange located in Hong Kong. It is Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and the Shanghai Stock Exchange and fifth largest in the world...

 and the Indian Stock Exchanges. Its largest shareholder is the Government of Singapore
Government of Singapore
The Government of Singapore is defined by the Constitution of the Republic of Singapore to mean the Executive branch of government, which is made up of the President and the Cabinet of Singapore. Although the President acts in his personal discretion in the exercise of certain functions as a check...

-owned Temasek Holdings
Temasek Holdings
Temasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...

.

History


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
Chartered Bank of India, Australia and China
The Chartered Bank of India, Australia and China was a bank founded in London in 1851/1853 by Scotsman James Wilson following the grant of a Royal Charter from Queen Victoria. It opened its first branches in 1858 in Calcutta and Bombay and then in 1863 in Karachi and Shanghai...

, and The Standard Bank of British South Africa
Standard Bank (historic)
The Standard Bank was a British overseas bank, which operated mainly in Africa from 1863 to 1969. It merged with the Chartered Bank in 1969 to form Standard Chartered.-History:...

.

Chartered Bank



The Chartered Bank was founded by Scotsman James Wilson
James Wilson (UK politician)
James Wilson was a Scottish businessman, economist and Liberal politician. He founded The Economist and the Standard Chartered Bank.-Early life:...

 following the grant of a Royal Charter by Queen Victoria in 1853.

Chartered opened its first branches in Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...

, Kolkata
Kolkata
Kolkata , formerly known as Calcutta, is the capital of the Indian state of West Bengal. Located on the east bank of the Hooghly River, it was the commercial capital of East India...

 and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. 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.

Standard Bank



The Standard Bank was a British bank founded in the Cape Province
Cape Province
The Province of the Cape of Good Hope was a province in the Union of South Africa and subsequently the Republic of South Africa...

 of South Africa in 1862 by another Scotsman, John Paterson. 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. 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
Standard Bank
The Standard Bank of South Africa Limited is one of South Africa's largest financial services groups. It operates in 30 countries around the world, including 17 in Africa.-History:...

 Ltd.

1969 to 2000


Both banks had acquired other smaller banks along the way and spread their networks further. In 1969, the banks decided to merge, 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
Lloyds Bank
Lloyds Bank Plc was a British retail bank which operated in England and Wales from 1765 until its merger into Lloyds TSB in 1995; it remains a registered company but is currently dormant. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies...

 of the United Kingdom made a hostile takeover bid for the Group. 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 $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.

The bank fully recovered in late 90's, 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.

21st century



In 2000, Standard Chartered acquired Grindlays Bank
Grindlays Bank
The Grindlays Bank was a major British overseas bank established in 1828.It operated mainly in British colonies, especially British India. After decolonization, it was a major foreign bank in India, Pakistan and other West Asian countries. As ANZ Grindlays Bank, it was for a while the largest...

 from ANZ Bank
ANZ Bank
The Australia and New Zealand Banking Group Limited , commonly called ANZ, is the fourth largest bank in Australia, after the Commonwealth Bank, Westpac Banking Corporation and the National Australia Bank. Australian operations make up the largest part of ANZ's business, with commercial and retail...

, increasing its presence in private banking and further expanding its operations in India and Pakistan. Standard Chartered retained Grindlays' private banking operations in London and Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...

 and the subsidiary in Jersey
Jersey
Jersey, officially the Bailiwick of Jersey is a British Crown Dependency off the coast of Normandy, France. As well as the island of Jersey itself, the bailiwick includes two groups of small islands that are no longer permanently inhabited, the Minquiers and Écréhous, and the Pierres de Lecq and...

, all of which it integrated into its own private bank. This now serves high net worth customers in Hong Kong, Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...

, and Johannesburg
Johannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...

 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
Astra International
Astra International was founded in 1957, based on a small trading business operated by brothers Tjia Kian Tie and William Soeryadjaya. The family had begun its trading activities by the 1940s, initially operated as a distributor of fruit juices and other agricultural and grocery goods, before...

 (An Indonesian conglomerate, a subsidiary of Jardine Matheson Group) took over PermataBank
Bank Permata
- Bank Bali :PT Bank Permata Tbk was established in Indonesia on December 17, 1954 based on the notarial deed No. 228 of Eliza Pondaag, S.H., substitute of Raden Mas Soerojo, S.H., notary in Jakarta...

 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.

On 15 April 2005, the bank acquired Korea First Bank, beating HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...

 in the bid. Since then the bank has rebranded the branches as SC First Bank.

Standard Chartered completed the integration of its Bangkok
Bangkok
Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...

 branch and Standard Chartered Nakornthon Bank in October, renaming the new entity Standard Chartered Bank (Thailand). 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
Asia Commercial Bank
Asia Commercial Bank, often abbreviated to the ACB, is the largest private bank in Vietnam by assets, headquartered in Ho Chi Minh City. It was founded in June of 1993. The bank's stock is listed at Hanoi Securities Trading Center, its symbol is ACB....

 Vietnam, Travelex, American Express Bank in Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...

 and Bohai Bank
Bohai Bank
Bohai Bank is a commercial bank in Tianjin, China. The capital of the bank is 5 billion yuan .The bank was the brainchild of the Tianjin mayor Mr Dai Xiang Long who turned a national banking licence for Tianjin, that had been promised to the city in the mid 1990s, into reality and in the process...

 in China.
On 9 August 2006 Standard Chartered
Standard Chartered Bank Limited
Standard Chartered Bank Limited is Pakistan's oldest and largest foreign commercial bank. It employs over 9000 people in its 162 branches in Pakistan.-History:...

 announced that it had acquired an 81% shareholding in the Union Bank of Pakistan in a deal ultimately worth $511 million. 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
Hsinchu
Hsinchu City is a city in northern Taiwan. Hsinchu is popularly nicknamed "The Windy City" for its windy climate.Hsinchu City is administered as a special municipality within Taiwan . The city is bordered by Hsinchu County to the north and east, Miaoli County to the south, and the Taiwan Strait...

 city in Taiwan. Standard Chartered, which had first entered Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...

 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
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

. 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. 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.
On 13 November 2008, Standard Chartered PLC announces that its subsidiary, Standard Chartered Bank (Hong Kong) Limited, has 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.

On 12 September 2009, The Times
The Times
The Times is a British daily national newspaper, first published in London in 1785 under the title The Daily Universal Register . The Times and its sister paper The Sunday Times are published by Times Newspapers Limited, a subsidiary since 1981 of News International...

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 2010/11 Premier League
2010–11 Premier League
The 2010–11 Premier League was the 19th season of the Premier League since its establishment in 1992. The 2010–11 fixtures were released on 17 June 2010 at 09:00 BST. The season began on 14 August 2010, and ended on 22 May 2011...

 season and last for four years, 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 .

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.

On 13 May 2010, Standard Chartered PLC launched the first-ever Indian Depository Receipt “IDR” offer
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.
In December 2010 Standard Chartered was recognised as the Global Bank of the Year in The Banker
The Banker
The Banker is an English-language monthly international financial affairs publication owned by The Financial Times Ltd. and edited in London...

's Bank of the Year 2010 awards.

Standard Chartered Breeze


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.

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

Senior management


Peter Sands
Peter Sands (banker)
Peter Sands is a British banker. Since November 2006 he is chief executive officer of Standard Chartered plc.- Early Life :...

 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.

Notable employees past and present



John Major
John Major
Sir John Major, is a British Conservative politician, who served as Prime Minister of the United Kingdom and Leader of the Conservative Party from 1990–1997...

, 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
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...

 in 1967, and worked for the bank at home and abroad until he was elected to parliament
Parliament of the United Kingdom
The Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body in the United Kingdom, British Crown dependencies and British overseas territories, located in London...

 at the 1979 general election
United Kingdom general election, 1979
The United Kingdom general election of 1979 was held on 3 May 1979 to elect 635 members to the British House of Commons. The Conservative Party, led by Margaret Thatcher ousted the incumbent Labour government of James Callaghan with a parliamentary majority of 43 seats...

 as Conservative Party
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...

 Member of Parliament (MP) for Huntingdon
Huntingdon
Huntingdon is a market town in Cambridgeshire, England. The town was chartered by King John in 1205. It is the traditional county town of Huntingdonshire, and is currently the seat of the Huntingdonshire district council. It is known as the birthplace in 1599 of Oliver Cromwell.-History:Huntingdon...

 in Cambridgeshire
Cambridgeshire
Cambridgeshire is a county in England, bordering Lincolnshire to the north, Norfolk to the northeast, Suffolk to the east, Essex and Hertfordshire to the south, and Bedfordshire and Northamptonshire to the west...

.

See also


  • Chartered Bank of India, Australia and China
    Chartered Bank of India, Australia and China
    The Chartered Bank of India, Australia and China was a bank founded in London in 1851/1853 by Scotsman James Wilson following the grant of a Royal Charter from Queen Victoria. It opened its first branches in 1858 in Calcutta and Bombay and then in 1863 in Karachi and Shanghai...

  • List of banks in the United Kingdom

External links