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Banks

Standard Chartered puts aviation arm up for sale after bid approach

Standard Chartered PLC (LSE:STAN) said it considering all options for its aviation finance business as it refocuses after a bid approach from First Abu Dhabi Bank.

Asia-focused Standard Chartered revealed the approach last week and though it said First Abu Dhabi had since cooled its interest it seems to have stirred a response.

A sale of aviation was part of a strategy outlined in February last year, Standard Chartered said in today's statement.

Aviation, which includes Pembroke, an aircraft leasing and finance operation, accounted for around 2% of the bank’s income of US$14.7bn in 2021 and 1% of risk-weighted assets (RWA) of US$271bn.

Simon Cooper, the bank’s chief executive of corporate, commercial & institutional banking, added: "Our aviation finance business is an established global franchise with a differentiated track record of originating and servicing aircraft leasing and lending transactions.

“We believe that a new owner can drive the next phase of growth whilst we continue to focus on our commitment to improving shareholder returns and delivering on our 2024 targets."

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