Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Finance

Standard Chartered profits down 64% with revenue missing estimates

A woman walking past Standard Chartered Bank/AFP

A woman walking past Standard Chartered Bank/AFP

HONG KONG, China, Apr 26 – Standard Chartered said Tuesday first quarter profits slumped 64 percent year-on-year as revenue for the period also plunged, following a turbulent 2015 in which the troubled bank announced it would axe thousands of jobs.

The Asia-focused bank said profits for the first three months fell to $539 million from $1.49 billion in the same period last year.

Revenue also missed estimates at $3.35 billion  short of the $3.49 billion predicted by analysts polled by Bloomberg News and slumping 24 percent compared with the first quarter a year earlier.

Earnings from corporate clients fell 27 percent to $1.85 billion, while income from retail clients also saw a drop of almost 20 percent to $1.21 billion.

But in a statement filed to the Hong Kong stock exchange the bank remained upbeat despite the results.

“Although trading conditions in the first quarter remained challenging, we continue to make good progress on our strategic objectives,” group chief executive Bill Winters said.

Like many global banks, Standard Chartered is battling turmoil in global financial markets that has seen stocks and commodities plunge.

In February it said it had swung to a surprise $2.36 billion net loss in 2015 against a backdrop of global market volatility, restructuring costs and bad loans, adding that its 2016 performance would remain “subdued”.

It announced in November that it was refocusing on “affluent retail clients” rather than corporate and institutional banking businesses and would exit or restructure $100 billion of assets and axe 15,000 jobs.

The bank also said executive directors did not receive bonus payments for the year.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...