27th Nov 2018 11:32
LONDON (Alliance News) - Standard Chartered PLC is considering plans to simplify its structure, as the FTSE 100-listed lender looks to cut costs, Bloomberg reported Monday.
The emerging markets lender currently operates in about 60 markets and Bloomberg said "people familiar with the matter" said Standard Chartered is "exploring how to free up liquidity and reduce funding expenses" within its different businesses.
The bank told Bloomberg it will outline how it intends to "deliver higher returns" when it reports its full-year results in February.
The plan is expected to address shareholder concerns about the lender's rising expenses and the roughly 40% drop in share price since Bill Winters was named CEO in the summer of 2015.
One aspect of the plan is expected to see the bank cutting its number of senior posts. Standard Chartered has about 86,000 staff, up from about 84,000 when Winters took over. The bank is still expected to create two Asian hubs - one in Singapore and another in Hong Kong.
The new plan is also expected to look into the lender's operations in Africa. Bloomberg said Standard Chartered "may opt to focus on some core countries", potentially leading to an exit from "smaller economies" such as Sierra Leone, Ivory Coast and Cameroon.
https://www.bloomberg.com/news/articles/2018-11-26/stanchart-is-said-to-weigh-a-simpler-structure-to-control-costs
In 2017, Standard Chartered had USD10.42 billion in operating expenses, which was up 2.1% from 2016 when the bank's operating expenses stood at USD10.21 billion.
Shares in Standard Chartered were down 0.5% on Tuesday at 612.82 pence each.
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