StanChart to shut equities activity

Added 8th January 2015

Institutional cash equities, equity research and equity capital markets are loss-making units that the bank will shed, impacting 200 jobs.

StanChart to shut equities activity
The closure of the units will bring the bank $100m of cost savings in 2016, officials said, and will "impact approximately 200 roles across seven of the Group's 70 markets".
Standard Chartered intends to keep capabilities in convertible bonds, equity derivatives and macro-economic and fixed income research in support of its core businesses. 
The bank will continue to provide strategic advice to its clients on equity financing.
The bank said the moves were continuing efforts "to exit or reconfigure non-core and underperforming businesses". 
"This decision is in addition to a number of actions being taken to deliver at least $400m of cost saves targeted for 2015, as communicated to investors last November, which the Group is already on track to achieve."
In the last three months, the bank said it cut 2,000 jobs in the retail clients group and 2,000 more are expected to be cut in 2015 "primarily to be achieved by not replacing staff when they leave".
Last year, Standard Chartered announced the sale or closure of its consumer finance businesses in China, Hong Kong, Germany and Korea; its retail bank in Lebanon; retail securities in Taiwan; commercial leasing subsidiaries in Pakistan, private banking activities in Geneva and various SME portfolios, in particular in the UAE.
"We are well on track to deliver at least $400m of cost saves for 2015, and we are now focussing on achieving further cost savings for 2016 and beyond as we continue creating capacity to invest in the Group's core businesses," said Peter Sands, group chief executive.

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