The private banking arm of Standard Chartered has posted an operating income of $557m for the year ended 31 December 2015, a decline of 9% compared to $612m a year ago.
The unit’s operating profit before impairment losses and taxation grew 14% to $188m from $165m a year ago, while profit before taxation fell 40% to $89m from $149m in 2014.
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Operating expenses stood at $369m, a decrease of 17% from $447m a year earlier. The unit’s net interest income declined to $339m from $346m a year ago.
Risk-weighted assets for private banking clients were up 9% to $7.1bn from $6.5bn a year ago.
The bank in its earnings statement said that it is planning to grow its assets under management sourced through private bank by increasing the number of relationship managers and increasing the number of clients sourced through corporate relationships and upgrading appropriate retail clients.
For the year ended 31 December 2015, income from wealth management products was $1.73bn, up 2% compared to $1.7bn in 2014. Net fees and commission income from wealth management reached $1.21bn from $1.15bn a year ago.
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By GlobalDataRestructuring charges at the bank were $1.8bn in 2015, which includes $695m charge relating to restructuring actions (corporate & institutional $231m, commercial $56m, private bank $8m and retail $400m).
Overall, the banking group posted a pretax loss of $1.52bn for 2015, compared with a pretax profit of $4.24bn a year ago, while underlying profit before tax was down 84% to $834m.
The group’s operating income was $15.4bn in 2015, a 15% fall from $18.2bn in 2014.
Standard Chartered Group CEO Bill Winters said: "While 2015 performance was poor, the actions we took on capital throughout last year and in particular in December have positioned us strongly for the current macro environment.
"We are making good progress on executing our strategy, creating a bank that will generate improved financial performance over time following from our improved cost efficiency, tightened risk controls, and focus on our many core advantages."
