StanChart Weighs Sale Of $4B Aircraft Leasing Division As Macro Headwinds Weigh

Author: Anusuya Lahiri | January 11, 2023 09:41am

• Standard Chartered PLC (OTC:SCBFY) eyes strategic options for its aviation unit, including a sale.
• The aviation finance business represents around 2% of the total Group income and 1% of Group RWA.
• Standard Chartered reportedly owned a fleet worth $3.7 billion, Reuters reports.
• Also Read: American Airlines And JetBlue Airways Tap Their Alliance Amid Antitrust Regulatory Opposition
• On January 5, United Arab Emirate-based First Abu Dhabi Bank (FAB) shared and ultimately abandoned a takeover bid.
• Commenting on the announcement, Simon Cooper, CEO of Corporate, Commercial & Institutional Banking and Europe & Americas at Standard Chartered, said, "We believe that a new owner can drive the next phase of growth whilst we continue to focus on our commitment to improve shareholder returns and delivering on our 2024 targets."
• The complexities of taking over the sprawling bank could hinder any deal, the report cited analysts and investors at the time of the FAB statement.
• The global aircraft leasing business faced challenges from inflation and rising borrowing costs despite the rebound in aviation demand.
• Related: Lufthansa Explores Partial Sale Of Aircraft Business As It Battles Strikes, Workforce Shortage
• Price Action: SCBFY shares closed at $16.76 on Tuesday.

Posted In: SCBFY