Arab Today, arab today standard chartered slashes dividend on profit slump
Last Updated : GMT 11:20:42
Arab Today, arab today
Arab Today, arab today

Standard Chartered slashes dividend on profit slump

Arab Today, arab today

Arab Today, arab today Standard Chartered slashes dividend on profit slump

Standard Chartered
Hong Kong - AFP

Asia-focused British bank Standard Chartered slashed dividends by 50 percent on Wednesday after profits plunged in the first half of the year, its first result under new leadership as it struggles to return to growth.

Net profit slumped 36.7 percent in the six months to June compared to the same period in 2014, with pre-tax profits nosediving 44 percent.

Shareholder dividends were cut by half from 28.8 cents per share to 14.4 cents per share.

Group CEO Bill Winters, former co-head at JP Morgan, took the reins from Peter Sands in June after shareholder calls for a boardroom cull following profit warnings.

Last month Winters appointed a new management team reporting directly to him as he tries to cut costs and improve performance.

But there was little cheer in the first-half results.

"We have delivered good progress on our target of strengthening the group's capital ratio and will continue to do so," said chairman John Peace in a statement to the Hong Kong stock exchange.

"However, these actions have also impacted our return on equity, and combined with a disappointing earnings performance and the current near-term outlook for the group, the board has decided to reduce the dividend by 50 per cent," he said.

Winters said the bank faced some "very real challenges".

"But they are fixable and it is important to remember that there is a strong business at the heart of the group," he said.

Net profit dropped from $2.31 billion to $1.46 billion, with adjusted profit before tax down from $3.27 billion to $1.82 billion.

Revenues were down eight percent while impairment losses on loans almost doubled.

Analysts said although the dividend cut was sharp, investors would be pleased the bank had not taken more drastic capital raising measures.

"The overall result is short of expectations. As an international bank, it isn't running as smoothly (as it should)," said Jackson Wong, associate director for Simsen Financial Group.

But he added: "No capital raising plan is welcomed by shareholders. Investors are holding on for Bill Winters to take the bank to a new direction."

- 'Not good news' -

Others said the dividend cut would affect sentiment.

"They are keeping the cash close to their chest. It's not good news. People don't like dividend cuts," said analyst Francis Lun.

"Standard Chartered is still facing a challenging environment in the second half."

Shares in the bank were up 0.7 percent in morning trading in London.

Standard Chartered survived the 2008 global financial crisis without state assistance, unlike many of its peers.

However it has suffered in recent times from a growth slowdown in emerging market economies in Asia, Africa and the Middle East, the regions from which it makes about 90 percent of its profits.

In 2014 it was also hit by a $300 million fine from New York state's banking regulator for failing to detect possible money-laundering.

That came two years after it had paid US regulators $667 million to settle charges that it violated US sanctions by handling thousands of transactions involving Iran, Myanmar, Libya and Sudan.

The bank's net profit fell by 37 percent in 2014, the second consecutive year of decline, prompting bosses to announce in March this year that they would forgo their bonuses.

Standard Chartered said in January it would axe 2,000 jobs around the world in 2015 as it tries to make savings of $400 million in a structural overhaul.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today standard chartered slashes dividend on profit slump Arab Today, arab today standard chartered slashes dividend on profit slump

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today standard chartered slashes dividend on profit slump Arab Today, arab today standard chartered slashes dividend on profit slump

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday