StanChart chops exec bonuses as profits tumble
OUTGOING Standard Chartered chief Peter Sands is not taking a bonus for 2014, yesterday announcing all board-level execs who served for the full year are losing the payout.
Pre-tax profits dived 30 per cent to $4.2bn (£2.8bn) on falling revenues, rising costs and the soaring bills from regulations and taxes.
The UK-headquartered bank’s income fell two per cent to $18.2bn, while expenses rose three per cent to $10.2bn.
Restructuring costs came in at $181m, and the bank levy increased by 56 per cent to $366m.
“I am disappointed with our performance in 2014, and I’m taking responsibility for that as the CEO. The buck stops here,” said Sands, who leaves his job in June.
“But I’m also proud of what the bank has achieved during 13 years I’ve been finance director and chief executive.
“It has been a privilege to lead people of Standard Chartered.”
He announced new targets for the bank over the coming years in a renewed effort to get its profits back on track.
Sands wants to increase the core tier one capital ratio from 10.5 per cent to 11 to 12 per cent by the end of 2015.
And he announced plans to earn returns on equity of more than 10 per cent as a medium-term goal.
Reaching that goal includes making savings of $1.8bn over the next three years. The bank is cutting its cost base by $400m this year. It reduced headcount by 2,000 staff last year and expects a similar fall this year.
Shares closed up 5.11 per cent yesterday.