Standard Chartered Bank is facing tough times, as the Asia-focused bank has been affected by the economic downturn in many Asian countries and declining commodity markets. The bank declared a $2.36 billion net loss in 2015 and cut 6,800 staff in 2015 as part of its plan to layoff 15,000 workers by 2018.
Summary of the 2015 financial results:
Underlying profit before tax of $0.8 billion, down 84 per cent year-on-year.
Reported loss before tax of $1.5 billion after restructuring charges of $1.8 billion.
Operating income of $15.4 billion, down 15 per cent year-on-year, impacted by:
o lower exchange rates against the US dollar
o business exits, disposals and de-risking
o lower commodity prices, and mark to market valuations
o lower levels of business activity
Here is what Bill Winters, Group Chief Executive, said:
“While 2015 performance was poor, the actions we took on capital throughout last year and in particular in December have positioned us strongly for the current macro environment. We have a balance sheet that is resilient and we are in the right markets. We have identified our risk issues, and we are dealing with them assertively. We are making good progress on executing our strategy, creating a bank that will generate improved financial performance over time following from our improved cost efficiency, tightened risk controls, and focus on our many core advantages.”
In Nigeria, Standard Chartered Bank currently has 42 branches spread across the different regions, according to its website and it will be interesting to see if these job cuts would affect some staffs here.