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Standard Chartered bosses forego bonuses as profits fall | |
(about 1 hour later) | |
UK bank Standard Chartered has reported a steep fall in full-year profits, compounding recent troubles for the emerging-markets focused bank. | UK bank Standard Chartered has reported a steep fall in full-year profits, compounding recent troubles for the emerging-markets focused bank. |
Pre-tax profits - including exceptional items - were $4.24bn (£2.76bn), down 30% on 2013, the bank said. | |
Board directors have decided to forego their bonuses as a result. | |
The news comes a week after the bank announced that chief executive Peter Sands would be replaced by ex-JP Morgan banker Bill Winters. | |
'Perfect storm' | |
Losses from bad loans increased to $2.14bn, up from $1.62bn, while operating income fell 2% to $18.23bn. | |
Mr Sands said: "2014 performance was disappointing, impacted by a challenging market environment and by the significant programme of restructuring and repositioning actions taken during the year. | |
"We faced a perfect storm: negative sentiment towards emerging markets, a sharp drop in commodity prices, persistent low interest rates and surplus liquidity, low volatility, and a welter of regulatory challenges." | |
In August 2014, Standard Chartered agreed to pay a $300m fine relating to its poor money laundering surveillance systems. | |
Shares up | |
The bank has been facing tough market conditions for some time and has issued three profit warnings in the past 12 months. | The bank has been facing tough market conditions for some time and has issued three profit warnings in the past 12 months. |
As part of a $400m cost-cutting programme, the bank is jettisoning 15 "underperforming and non-strategic businesses", it said. | |
Mr Sands had been under pressure over the bank's slumping share price. | |
Standard Chartered's chairman Sir John Peace is to step down in 2016 and three non-executive directors are also leaving. | |
The bank's shares were up nearly 6% in morning trading as shareholders responded well to the bank's recovery plan. | |
But the share price is still nearly 20% lower than it was a year ago. |
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