Standard Chartered Plc is closing its institutional equities business, eliminating about 200 jobs, Bloomberg reported Thursday.
Shutting the loss-making cash equities, equity capital market and equity research operations will save about US$100 million next year, the London-based bank said in a statement.
The bank is taking an unusual step in exiting the business of managing companies’ share offerings.
But it will keep its convertible bonds and equity derivatives businesses, as well as economic and fixed-income research.
Chief executive Peter Sands plans to cut US$400 million of costs this year to stem profit declines that led the shares to plunge the most in six years in 2014.
About half the cost savings planned for this year will come from its retail client business, Standard Chartered said.
The Asia-centered bank said it cut about 2,000 jobs in the past three months as it focused on key cities and accelerated a switch to digital banking, with a further 2,000 reductions expected this year.
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