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Standard Chartered cuts 15,000 jobs and raises $5.1bn | |
(34 minutes later) | |
Standard Chartered, the Asia-focused UK bank, is to cut 15,000 jobs and raise $5.1bn (£3.3bn) to create a "lean, focused and well-capitalised" group. | |
About $3bn being raised in the rights issue will cover restructuring costs. | |
The strategic review was announced as Standard Chartered reported a "disappointing" third-quarter operating loss of $139m for the three months to September. | |
That figure compared with a profit of $1.5bn a year earlier. | |
Bill Winters, who replaced Peter Sands as Standard Chartered's chief executive in June this year, announced a strategic review of the bank's organisational structure when he took over. | |
He put a new management team in place in July and analysts have been expecting the bank to seek additional capital to shore up its balance sheet for some time. | |
Standard Chartered shares fell 4% on the Hang Seng stock exchange in Hong Kong. | Standard Chartered shares fell 4% on the Hang Seng stock exchange in Hong Kong. |
'Poised for growth' | 'Poised for growth' |
Mr Winters acknowledged the challenging business environment within which the lender was operating. | Mr Winters acknowledged the challenging business environment within which the lender was operating. |
Growing regulatory costs and controls in the wake of the financial crisis have weighed on big lenders in the UK, US and Australia. | Growing regulatory costs and controls in the wake of the financial crisis have weighed on big lenders in the UK, US and Australia. |
Standard Chartered has already shed some businesses, in Hong Kong, China and Korea, to help improve its capital position. | Standard Chartered has already shed some businesses, in Hong Kong, China and Korea, to help improve its capital position. |
Among its various plans outlined on Tuesday, Standard Chartered said a "step-up in cash investment" by more than $1bn would be used to help reposition its retail banking, private banking and wealth management businesses, as well as upgrade its Africa franchise and yuan services. | Among its various plans outlined on Tuesday, Standard Chartered said a "step-up in cash investment" by more than $1bn would be used to help reposition its retail banking, private banking and wealth management businesses, as well as upgrade its Africa franchise and yuan services. |
"This comprehensive programme of actions will result in a lean, focused and well capitalised international bank, poised for growth across our dynamic and growing markets in Asia, Africa and the Middle East," Mr Winters said. | "This comprehensive programme of actions will result in a lean, focused and well capitalised international bank, poised for growth across our dynamic and growing markets in Asia, Africa and the Middle East," Mr Winters said. |
Temasek, Singapore's state investor and Standard Chartered's largest shareholder, supported the share sale, the bank said. | Temasek, Singapore's state investor and Standard Chartered's largest shareholder, supported the share sale, the bank said. |
Standard Chartered employs 86,000 people and makes about 90% of its profits from operations across Asia, the Middle East and Africa. | Standard Chartered employs 86,000 people and makes about 90% of its profits from operations across Asia, the Middle East and Africa. |