Standard scales back its income growth target

Britain’s fourth biggest bank by market value – which makes almost all its profits in Asia, Africa and the Middle East – also said it plans to get rid of smaller, underperforming businesses as part of a plan to sharpen its focus on profitability.

The bank said its long-term target was still to deliver income growth of at least 10 per cent a year, but shorter term growth would probably be “high single digit”.

It kept its return on equity target of at least 14 per cent, but said it may not achieve that in the short-term either.

“We are unlikely to achieve double-digit income growth for the next couple of years,” finance director, Richard Meddings, said at the start of an investor day for analysts.

“In a world where GDP growth may slow and regulation and competition are changing, we need to adapt our framework.”

Mr Meddings and chief executive Peter Sands said the bank plans to take a harder approach to how they allocate capital and investment and will rein in costs and axe businesses.

Last year the bank closed its retail banking business in Japan.