A 'cost rationalization' to revive struggling bank.
Standard Chartered said it will cut 15,000 jobs by 2018, and raise $5.1 billion in a rights issue as CEO Bill Winters struggles to revive a bank that halved in value over the past two years.
Standard Chartered’s shares plunged as much as 6.2% in Hong Kong after the announcement, extending this year’s decline to 31%.
The moves came as the London-based bank posted an unexpected quarterly loss and ahead of the publication next month of British regulators’ bank stress tests. The bank, which generates most of its revenue in Asia, said it has been hurt by China’s slowdown and slumping commodity prices.
Winters said: 'This comprehensive programme of actions will result in a lean, focused and well capitalised international bank, poised for growth across our dynamic and growing markets in Asia, Africa and the Middle East.
'We have an outstanding franchise at the heart of this bank, and we are focused on taking advantage of it'.
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