StanChart to cut 15,000 jobs by 2018, posts Q3 loss
ASIA-FOCUSED British bank Standard Chartered said yesterday it would axe 15,000 jobs by 2018 and raise US$5.1 billion (S$7.1 billion) in capital after posting a "disappointing" third-quarter loss.
The job losses are part of a major restructuring that will cost around US$3 billion, the bank said.
A Standard Chartered spokesman said she could not give any further details of the job cuts.
Over half the restructuring costs would come from potential losses on liquidating assets and businesses. The remaining charges would be from "potential redundancy costs" of a planned headcount reduction of 15,000, as well as goodwill write-downs.
The bank reported an unexpected pre-tax quarterly loss of US$139 million, compared with a US$1.53 billion profit a year earlier, due to growing regulatory costs and rising loan impairments in India.
The bank's shares on the Hong Kong stock exchange closed down nearly 3 per cent - its stock value has fallen around 30 per cent in the past year.
It plans to raise US$5.1 billion in capital through a rights issue and a strategic review that raised its cost-cutting target to US$2.9 billion between this year and 2018. It said Singapore's Temasek, the bank's top shareholder, indicated it intends to take up its full allocation of the rights issue, representing 15.8 per cent of the existing share capital.
AGENCE FRANCE-PRESSE, REUTERS