Standard Chartered Chief Executive Officer Peter Sands unleashed the biggest round of job cuts in his eight-year tenure at the U.K. bank as he seeks to persuade critics he can stem a two-year drop in earnings.
Bloomberg News reports that Sands, 53, today announced a plan to cut about $400m by eliminating equities trading and slashing 4,000 consumer-bank jobs. The shares have dropped 26% over the past 12 months, putting Standard Chartered among the worst performers in the 45-member Bloomberg Europe 500 Banks index.
'This may be management’s last chance to convince investors', said Chirantan Barua, an analyst at Sanford C. Bernstein, who has an underperform rating on Standard Chartered. 'They are doing things at the margin, this isn’t going to improve earnings or boost capital radically, so the fundamental pressures on the bank remain'.
To access the complete Bloomberg News article hit the link below: