Standard Chartered cuts bonuses

Standard Chartered Shanghai Towers

Standard Chartered CEO Peter Sands cut bonuses and reassured investors capital levels can weather writedowns, boosting the stock after the bank’s first annual profit drop in a decade.

Bloomberg reports that the bank, which makes three-quarters of its earnings in Asia, said today that pretax profit declined 12% to $6.06bn for 2013, including a previously announced $1bn writedown of its Korean unit

Sands, 52, whose bonus declined by 21%, said on a conference call that the company has a 'very strong balance sheet'.

Across the firm, Standard Chartered reduced its bonus pool 15% to $1.3bn and said it paid about twice as much in dividends as it did in bonuses. The bank forecast 'modest growth' in 2014, though revenue and profit in the first half will be 'challenged'.

'There’s a degree of relief on their capital position', said Julian Chillingworth, who oversees about $36.7bn as chief investment officer at Rathbone Brothers in London, including Standard Chartered shares. 'The outlook is relatively cautious, but that’s already been factored in the share price'.

To access the complete Bloomberg article hit the link below:

Standard Chartered CEO Cuts Bonuses and Reassures on Capital

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images: © Standard Chartered, © Standard Chartered

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