StanChart rumoured to be cutting 10 percent of its CIB jobs
(1 December 2016 – Global) Standard Chartered is set to cut about a tenth of its global corporate and institutional banking headcount, sources have said.
The rumours follow Chief Executive Bill Winters’ declaration earlier this month that the bank's income and profit results were unacceptable.
Sources, who declined to be named told reporters that the job cuts will be rolled out immediately, starting with Singapore and Hong Kong.
"We are making our corporate and institutional banking division more efficient," a Standard Chartered spokesman said.
"Removing duplication in roles and managing our costs to protect planned investments in technology and people means that a small number of existing roles will be impacted."
Winters has already moved to close the stock trading business and raise US$5.1 billion (A$6.9 billion) in capital.
The latest headcount cut marks the first major move by former senior HSBC banker Simon Cooper who joined in April as chief executive of corporate and institutional banking. He has been working to overhaul and streamline the structure of the corporate and institutional banking division, the largest unit of the bank accounting for more than 46 percent of its operating income in the six months ended June.
Returns from the bank's corporate and institutional banking, which includes corporate finance and transaction banking, were hurt by loan impairments and high expenses, Standard Chartered said in last year's annual report.
In the quarter ended September, its corporate and institutional banking income dropped 7.5 percent from the year-ago period to US$1.6 billion, pulling the bank's total operating income down nearly 6 percent.
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