Standard Chartered has no plans for a capital raise, despite drop in profit
Standard Chartered announced that it has “no plans for a capital raise” through selling new shares, despite a 25 percent drop in annual pretax profit – due to backing bad loans.
It posted profit of £3.4 billion in 2014, down from £4.6 billion in 2013.
The bank said there is a plan of action though, through cutting costs and selling assets to improve its financial strength.
According to the firm, it will cut costs by £260 million this year. Part of its cost-cutting plan involves reducing its headcount – which currently stands at around 70,000 – in addition to exiting “15 underperforming and non-strategic businesses”, and recent leadership changes.
Chairman of Standard Chartered, Sir John Peace, said in a regulatory statement:
“2014 was a challenging year and our performance was disappointing, but it was also a year when we took decisive action to refocus our strategy and to reposition the Group for the future and to restore shareholder value,”
Sands, who served as CEO Standard Chartered for several years until only recently, when he announced his resignation, said:
“We are reshaping the Bank to respond to the way our world has changed and to ensure we fulfil our aspiration to bank the people and companies driving trade, investment and the creation of wealth across Asia, Africa and the Middle East,” said Sands.
“I leave Standard Chartered proud of what we have achieved and confident about what the future holds for this extraordinary institution.”
Bill Winters appointed as new CEO
US-born banker Bill Winters has been appointed as the new CEO of the company.
Sandy Chen, an analyst at Cenkos Securities in London, said:
“Winters brings not just his long experience from JPMorgan but also the political nous from his stint on the UK Independent Commission on Banking,”
“These sweeping board changes will clear the way for Winters to lead the major changes the bank needs.”