Standard Chartered Bank to close the branches in 2015

Standard Chartered Bank will close up to 100 bank branches next year in Asia, Africa and the Middle East in an attempt to improve its profitability. The UK bank plans to reduce approximately 8% of its global network, consisting of more than 1,200 branches which will save $400m (€319m) a year.

Standard Chartered Bank to close the branches in 2015

Standard Chartered will close up to 100 bank branches next year in Asia, Africa and the Middle East in an attempt to improve its profitability. The UK bank plans to reduce approximately 8% of its global network, consisting of more than 1,200 branches which will save $400m (€319m) a year.

The announcement came during a three day long meeting with investors in Hong Kong. The Asia-focused bank has been facing hard-hitting market conditions and has issued three profit warnings this year. Finance Director Andy Halford in a presentation to investors stated "We recognise our recent performance has been disappointing and are determined to get back on to a trajectory of sustainable, profitable growth, delivering returns above our cost of capital".

It has been a tough year for the bank; it experienced a 16% fall in the third quarter operating profit from a year ago, due to restructuring of its business and an increase in bad loans, particularly in Asia. The bank had seen 10 years of record earnings which ended in 2012.

Its shares which are based in London are reportedly down by over 30% so far this year and in August, the lender agreed to pay $300m (€239m) in fines to New York regulators, for failing to improve its money laundering controls that were first identified to be potentially defective back in 2012.


Cyprus:
+357 25 02 50 34
Singapore:
+65 62 47 71 92
Russia:
+7 812 458 46 22
Skype:
eltoma.0015