Standard Chartered to cut 15,000 jobs after third quarter losses of $139m

News of the job cuts comes as Asian-facing bank reports a third quarter operating loss of $139 million

‘London will take hits in the context of Brexit,’ the bank boss said (Getty)

The CEO of Standard Chartered has said 15,000 jobs at the bank will be cut over the next three years, with the aim of raising £3.3 billion in capital, in a radical turnaround plan.

News of the job cuts came as Asian-facing bank reported a third quarter operating loss of $139 million. It put the losses down to growing regulatory costs and rising loan impairments in India.

Bill Winters was brought into the bank in June to replace Peter Sands, whose position as chief executive became untenable after a decade-long run of uninterrupted profit growth ground to a halt.

The former JPMorgan banker is targeting $2.9 billion in cost savings by the end of 2018. About $100 billion (£64.7 billion) of those saving will come from restructuring the bank’s risk-weighted assets.

"The plans we have outlined today significantly reallocate resources to change fundamentally the mix of the Group towards more profitable and less capital intensive businesses," Winters said in a statement.

"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."

Revenue slumped 18 per cent, meaning the Liverpool football club sponsor notched up its fifth successive quarter of falling revenue. Asia's economic slowdown, rising bad loans and weakening currencies were to blame for the result.

The bank confirmed it would not pay a final dividend for the year to December 31.

Hargreaves Lansdown's Richard Hunter called the results disappointing.

"The scrapping of the final dividend payment would in itself have been a setback, let alone the overall quarterly loss against expectations of a profit for the period, but these are eclipsed by the announcement of a rights issue which is an admission of the need for assistance," he said.

"If there is an upside to today’s news, it may be that this kitchen sinking prepares the ground for a real turnaround, whilst also underling the determination of the new Chief Executive to make his mark – and quickly. Further out, the group’s exposure to the regions which are causing it problems today may yet return to being an asset rather than a liability."

Standard Chartered shares plunged 6.3 per cent or 45p to 668.7p in early trading in London.