It said it would invest $1 billion in several strategic businesses, including its private banking and wealth management arm, its African business and renminbi services in China.
The strategy update came as Standard Chartered reported a pretax loss of $139 million in the third quarter, driven by its winding down of some businesses, depressed commodity prices and challenging conditions in several crucial markets, including China.
- “I, and everyone on our management team and our board, is well aware of the challenges we face,” Mr. Winters said on a conference call with journalists on Tuesday, “and recognize that we need to take very substantial action to deliver this plan that we set out.”
“We are highly confident that we’re going to generate the underlying value that this franchise has been able to deliver at many points in the past and is consistent with the strong underlying nature of our franchise,” he added.
Shares of Standard Chartered declined 8.7 percent to 651.2 pence, or about $10.05, a share in midday trading in London on Tuesday. Its shares also declined in Asia on Tuesday.
As part of the overhaul, Mr. Winters had said that the bank would have three main divisions (corporate and investment banking, commercial and private banking, and retail banking) and that the management team would report directly to him.
Standard Chartered also said on Tuesday that its corporate and institutional banking unit would look to reduce the number of its products that were “capital intensive”and would seek to reduce the so-called risk-weighted assets by $50 billion in the unit.
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