Standard Chartered share price: Bank to close equities business, cut retail jobs

on Jan 8, 2015
Updated: Oct 21, 2019
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iNVEZZ.com, Thursday, January 8: Standard Chartered Plc (LON:STAN)is to continue with its aggressive cost-cutting approach , with more lay-offs and closures of non-core businesses planned for 2015. The troubled Asia-focused bank announced today that it would shut its institutional cash equities, equity research and equity capital markets “ECM” operations, saying that the move was expected to deliver around $100 million in cost savings in 2016. The closures would result in approximately 200 job cuts, the bank noted.

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Standard Chartered also plans to axe 2,000 employees in its retail clients division this year. This is on top of 2,000 jobs cuts already announced or completed in the last three months. The lender also shut 22 branches in the second half of last year.
Standard Chartered’s chief executive officer Peter Sands commented: “We are demonstrating action and progress as the management team focuses on delivering returns for shareholders.” Sands added: “We are well on track to deliver at least $400m of cost saves for 2015, and we are now focussing on achieving further cost savings for 2016 and beyond as we continue creating capacity to invest in the Group’s core businesses.”

The bank said the retail job cuts were expected to contribute to $200 million in cost savings this year. However, some analysts suggested that more action might be needed to reverse the bank’s fortunes. Reuters quoted James Antos, a banking analyst at Mizuho Securities Asia in Hong Kong, as observing: “It’s a logical step. But laying off staff is not enough to address the situation.”
In today’s trading Standard Chartered shares were up 1.9 percent at 980.00p as of 08:11 UTC. The bank’s stock has risen 1.9 percent since the start of the year.
According to the Financial Times, as of January 03, 2015, the consensus forecast amongst 63 polled investment analysts covering Standard Chartered suggests that investors should hold their position in the company. This consensus has been maintained since May 08, 2013, when the sentiment of investment analysts deteriorated.
As of 10:27 GMT, Thursday, 08 January, Standard Chartered PLC share price is 991.95p.

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