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Standard Chartered quarterly profit falls 16% | Standard Chartered quarterly profit falls 16% |
(35 minutes later) | |
Standard Chartered has announced a 16% fall in operating profit because of a restructuring of its South Korean business and an increase in bad loans. | |
The Asia-focused lender said pre-tax profits fell to $1.5bn (£930m) in the July-to-September quarter compared to the same period a year ago. | The Asia-focused lender said pre-tax profits fell to $1.5bn (£930m) in the July-to-September quarter compared to the same period a year ago. |
Standard Chartered also warned full-year earnings would fall because of weak trading activity. | Standard Chartered also warned full-year earnings would fall because of weak trading activity. |
It also plans to cut an additional $400m in costs for 2015. | |
Standard Chartered chief executive Peter Sands, who has run the firm since 2006, said "trading conditions remain subdued". | |
"We are executing our refreshed strategy, including reprioritising investments, exiting non-core businesses, de-risking certain portfolios and reallocating capital," he said in a statement. | |
"We also continue to make progress in reshaping Korea. Whilst some of these actions will impact near term performance, they are crucial to getting us back to a trajectory of sustainable, profitable growth". | |
Market challenges | |
Mr Sands has been under pressure over the lender's weak performance over the last two years, which it attributes to a "challenging" market environment. | |
Standard Chartered shares have lost 20% of their value this year in London, compared to a 5% decline in the benchmark FTSE 100 index. | |
The lender makes about three-quarters of its profit in Asia but a slowdown in many emerging markets have hurt growth. | |
"We remain watchful in India, in China and of commodity exposures more broadly, where we have continued to tighten our underwriting criteria and reduce our exposures," it said. | |
Standard Chartered has also been facing heavy scrutiny from regulators. | |
In August, it warned that it may have to pay its second fine in two years over a breach of US anti-money laundering rules. |
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