The lender plans to eliminate residual drags on returns from low-returning markets such as India, South Korea as well as the UAE and Indonesia.
Tuesday 26, February 2019
(Bloomberg) – The Chief Executive Officer of Standard Chartered has announced plans to reduce costs and restructure operations in markets including India and South Korea as part of a long-awaited plan to turn around the lender.
The bank is aiming to cut $700 million in costs as part of a new three-year plan that the emerging markets focused-lender hopes will soothe investor concerns over its lacklustre returns.
Bill Winters, the Chief Executive of Standard Chartered aims to convince investors he can revive longer-term earnings growth and generate an acceptable level of profitability while cutting costs.
The CEO has spent much of his tenure cleaning up the balance sheet and culture of the London-based firm, which had been saddled with bad loans.
Last week, the lender announced that it’s taking a $900 million charge for the fourth-quarter to cover potential US and UK penalties, including a GBP 102 million ($133 million) fine from the British financial regulator related to its financial crime controls.
The US Justice Department extended a long-running agreement with Standard Chartered over allegations that the bank illegally processed transactions on behalf of Iran, giving the lender another three months under an outside monitor in December.