British banking major Standard Chartered has revealed that it is exploring strategic alternatives for its aviation finance business, Pembroke.
The move is a part of London-headquartered bank’s February 2022 business strategy.
Pembroke is claimed to be a leading business for leasing and financing aircrafts. It serves airline and financial institution clients in North America, Europe, Asia, Africa, and the Middle East while managing a current fleet of aircraft.
The aviation financing sector accounts for just 2% of the overall group revenue and about 1% of the group RWA.
Standard Chartered CEO of corporate, commercial & institutional banking and Europe & Americas Simon Cooper said: “Our aviation finance business is an established global franchise with a differentiated track record of originating and servicing aircraft leasing and lending transactions, high-quality aircraft and loan portfolios, world-class airline relationships and a proven and respected management team.
“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.”
Earlier this month, United Arab Emirates-based First Abu Dhabi Bank (FAB), in a stock filing, announced that it considered making a potential bid for Standard Chartered. The merger would have created a bank with more than $1 trillion in assets.
