Standard cut 800 jobs to combat conditions

The group its income rose by more than 10 per cent in the first quarter, putting it on track for its ninth successive year of record earnings.

Costs rose at a faster rate than income after a hiring spree last year, however, taking the shine off the trading update.

Banks in Asia have been in an increasingly intense battle to hire and retain talent, especially in hot markets such as India and China.

Standard Chartered is under pressure to show it has costs under control.

“They are still seeing a high level of cost growth in the wholesale bank,” said Bruce Packard, analyst at Seymour Pierce in London.

The bank said it would deliver on its promise to keep cost growth in line with income growth this year.

“We’ve got a good grip on expenses,” finance director Richard Meddings said. “This isn’t about cutting jobs, it’s about the pace of hiring...this is about management pulling the levers of expense growth.”

Mr Meddings said he expected the bank to add about 1,000 staff net this year, after a net 800 fall in the first quarter. It added 7,000 employees last year, giving it roughly 85,000 staff.

The hiring and competition last year drove costs up 13 per cent, outpacing a 6 per cent income rise. So-called ‘negative jaws’ remained in the first quarter, but was significantly narrower than last year, the bank said.