Standard Chartered has decided shut down its unprofitable institutional cash equities, equity research and equity capital markets business to cut costs and boost profits.
The bank also revealed plans to cut another 2,000 jobs in its retail banking division, apart from the 2,000 already announced.
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The closure of the equities business is expected to resulting in 200 jobs being cut, mostly in Asia. Together with branch closures that are also under way, the retail cuts will save $200 million.
In November last year, Standard Chartered informed its shareholders it would attempt to deliver $400m in cost savings in 2015.
The bank, in its press release, said it would continue to expand its capabilities in convertible bonds, equity derivatives and macro-economic and fixed-income research as well as provide strategic advice to clients on equity financing.
StanChart CEO Peter Sands said: "We are continuing to take significant action on costs by exiting or reconfiguring non-core and underperforming businesses, and by increasing the efficiency of our core businesses.
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By GlobalData"We are well on track to deliver at least $400m of cost saves for 2015, and we are now focusing on achieving further cost savings for 2016 and beyond as we continue creating capacity to invest in the Group’s core businesses," he added.
