Date
21 January 2017
StanChart plans to get rid of 15,000 jobs worldwide. Photo: AFP
StanChart plans to get rid of 15,000 jobs worldwide. Photo: AFP

StanChart axes 15,000 jobs, plans US$5.1 bln capital raising

Standard Chartered said Tuesday it will cut 15,000 jobs and raise US$5.1 billion in capital after posting a “disappointing” third-quarter loss.

The job losses are part of a major restructuring that will cost about US$3 billion, the Asia-focused British bank said in a statement to the Hong Kong stock exchange.

More than half of the restructuring costs will come from potential losses on liquidating assets and businesses, it said.

The remaining charges will be from “potential redundancy costs” of a planned headcount reduction of 15,000, as well as write-downs of goodwill, AFP reported.

The bank reported an unexpected pretax quarterly loss of US$139 million compared with US$1.53 billion profit a year earlier in a performance described as “disappointing” by group chief executive Bill Winters in a statement.

Revenue fell 18.4 per cent to US$3.68 billion for the quarter, and impairment losses increased from US$536 million to US$1.23 billion.

The bank said it was refocusing on “affluent retail clients” rather than corporate and institutional banking businesses.

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