Thursday 28 Mar 2024
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SINGAPORE (Jan 8): Standard Chartered Bank has confirmed reports that it will shut down its institutional equities business globally as part of its US$400-million ($524-million) cost-cutting programme.

“As part of the bank’s execution of the refreshed strategy announced last year, the decision has been taken to exit globally the institutional cash equities, equity research and equities capital market business with immediate effect," a bank spokesperson said in an email response to media queries.

About 200 jobs will be cut.

The move does not affect its "core strategic aim" of supporting the international trade, wealth, fixed-income, currencies, and commodities needs of its corporate and affluent retail clients, the spokesperson said.

The bank will retain its equity derivatives and convertible bond businesses and continue to develop its macro, fixed-income, currencies and commodities research capabilities, according to the emailed statement.

A transition team will remain to manage the interim period, said the spokesperson.

Closing the loss-making cash equities, equity capital markets and equity research operations will save about US$100 million in 2016, according to the bank.

Standard Chartered will also reduce headcount in Malaysia by 11% in the first quarter, according to Bloomberg, citing an internal memo.

The move will affect staff in teams including the retail-client business and branding and marketing, said the report.

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