Standard Chartered targets $1.8bn of savings as profits plunge

Pretax profit fell by 25 per cent at Standard Chartered bank, as it was impacted by the challenging market environment, de-risking and disposal actions.
By The Newsroom
Published 4th Mar 2015, 08:45 BST

Profit before tax was down to $5.2bn, down from $7bn in 2013. The multinational bank also said that operating income was down two per cent from 2013. Loan impairments jumped to $2.1bn from $1.6bn.

Standard Chartered said it aims to cut $1.8bn in costs, over the next three years, as part of a turnaround plan for the Asia-focused bank, after profits fell 25 per cent last year due to a big jump in losses from bad loans.

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Chairman of Standard Chartered PLC, Sir John Peace, said: “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.”

The bank said its target to save $1.8bn in the period from 2015 to 2017 will include exiting some businesses, but most will come from improving efficiency. It said it was on target to save $600m in headline costs this year, beyond its target of $400m in savings.

Problems at the bank have built in the last two years, and last week it said chief executive Peter Sands will leave in June after eight years in charge, to be replaced by former JPMorgan investment bank boss Bill Winters. It was part of a major management overhaul that will also see the chairman leave next year.