10th Jun 2015 08:58
LONDON (Alliance News) - Standard Chartered PLC's capital strength is a top priority, Chief Executive Bill Winters has written in a letter to employees to mark his first day in the role, highlighting its importance as a competitive advantage for banks in tough economic conditions.
"Capital strength is a competitive advantage, especially in tough economic times. We are reviewing all aspects of our capital strength as part of our broader business review," Winters wrote in a letter seen by Alliance News.
Standard Chartered's capital strength has been the subject of much debate among financial analysts, many of whom have raised the prospect of an equity fundraising as a way to boost the lender's financial strength. The bank has instead concentrated on building capital strength by cutting risk-weighted assets and exiting under-performing businesses.
Winters wrote that he envisages being able to share his broader plans for the bank by the end of 2015.
Winters, a former JP Morgan investment banking executive, was appointed by Standard Chartered to succeed Peter Sands, who had been the Asia-focused bank's chief executive since November 2006.
Standard Chartered's exposure to emerging markets, where the bank makes most of its money, enabled it to weather the financial crisis than many other lenders. But the bank has had a tough time since pretax profit came under pressure in 2013.
It had to pay USD667 million to US authorities in December 2012 due to failures over US sanctions against Iran, while investors have shown concern about emerging markets due to the US Federal Reserve's gradual withdrawal of its economic stimulus policies.
The bank was then fined USD300 million in August 2014 over anti-money laundering deficiencies, followed by the extension of a deferred prosecution agreement entered in December 2012 with the US Department of Justice and the New York County District Attorney's Office later that year.
Standard Chartered shares were up 3.9% at 1,074.00 pence on Wednesday morning, among the top gainers in the FTSE 100.
By Samuel Agini; [email protected]; @samuelagini
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