StanChart to cut 10 percent of corporate, institutional banking staff: sources

Tue Nov 29, 2016 7:06am EST
 
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By Anshuman Daga and Sumeet Chatterjee

SINGAPORE/HONG KONG (Reuters) - Standard Chartered STAN.L is set to cut about a tenth of its global corporate and institutional banking headcount, sources with direct knowledge of the matter said on Monday, as the bank steps up an aggressive drive to cut costs.

Chief Executive Bill Winters this month branded the bank's income and profit unacceptable, as below-forecast third-quarter results underlined the challenges facing his overhaul.

The job cuts will be rolled out beginning this week across all the major business centers starting with Singapore and Hong Kong, one of the sources told Reuters. All the sources declined to be named because they were not authorized to speak to the media.

"We are making our corporate and institutional banking division more efficient," a Standard Chartered spokesman said, without revealing how many jobs are to be axed.

"Removing duplication in roles and managing our costs to protect planned investments in technology and people means that a small number of existing roles will be impacted."

Former JPMorgan (JPM.N: Quote) investment banker Winters has already moved to close the stock trading business and raise $5.1 billion in capital.

These efforts have paid off for Standard Chartered's bottom line, and its third quarter result marked a second consecutive quarter of profit after it swung to an annual loss for 2015, when it was hit by the costs of revamping its management team.

Winter also said in November last year the bank would cut 15,000 jobs. It was not immediately clear whether the cuts in corporate and institutional banking formed part of that.   Continued...

 
A woman walks down the stairs of the Standard Chartered headquarters in Hong Kong October 13, 2010. REUTERS/Bobby Yip/File Photo