Business

Standard Chartered to cut more jobs

People walk down a stairway from the Standard Chartered bank headquarters building in Hong Kong on August 20, 2014. Image copyright Getty Images
Image caption The lender has been facing tough market conditions and in 2014 issued three profit warnings

Standard Chartered has said it will axe jobs and shut its equities business in a continued effort to cut costs and boost profits.

The Asia-focused lender said on Thursday the move would help it save some $100m (£66.2m) in 2016.

It also said it plans to shed another 2,000 positions in its retail banking division, on top of the 2,000 already announced.

The bank issued three profit warnings last year.

It posted a 16% fall in operating profit in October last year due to a restructuring of its South Korean business and an increase in bad loans.

The bank's Hong Kong-listed shares were up more than 2% on Thursday as investors welcomed the cost-cutting news.

Job cuts

Standard Chartered told its investors in November last year it would try to deliver $400m in cost savings this year.

It said on Thursday it was on track to deliver those savings.

Image copyright AFP
Image caption Standard Chartered bank said in November it would close 80 to 100 branches to improve profitability in 2015

Some 2,000 job cuts had been announced or completed in its retail sector over the last three months, the lender said, "with a reduction of a further 2,000 expected during 2015."

The bank also said in November that it would close up to 100 bank branches in 2015 in Asia, Africa and the Middle East in an attempt to boost its profitability.

On Thursday it said it had made "good progress in closing 22 branches in the second half of 2014" and that it was on track to close up to 100.

Steven Chan, an analyst at Maybank Kim Eng Securities in Hong Kong said the moves "would certainly help improve the bank's profits."

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