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The bank is under pressure to improve
performance after three profit warnings this year and a
30-percent plunge in its shares, and is holding three days of
meetings with investors in Hong Kong to spell out its plans.
"We recognize 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," Finance Director Andy Halford said in slides
accompanying his presentation to investors.
Ten years of record earnings for Standard Chartered came to an
abrupt halt in summer 2012 when it had to pay $667 million for
violating U.S. sanctions on Iran. It has since been hit by a
surging bad debts in key markets such as China and India.
Standard Chartered said in its slides that returns at its retail
bank were being held back by high costs and that it aimed to cut
80-100 branches, out of 1,248 it had at the end of June.
Halford said the bank was aware of investor concerns, including
whether its cost cutting plans went far enough and whether its
capital was high enough. He also acknowledged their concerns
over a rise in bad debts and non-performing loans and whether
management was doing enough to tackle problems.
"We understand and are responding to the challenges we are
facing. You will see further progress in 2015," he said.
The slides said the bank aimed to increase assets under
management in its wealth management and private banking
businesses by 10 percent or more next year, from $66 billion and
$56 billion, respectively, at the end of June.
It is also aiming to get more out of its corporate finance
bankers. It wants that business to show a 10 percent or more
increase in deals and a similar rise in revenues from its eight
priority markets and in revenues per banker.
In retail, where Standard Chartered has more than 10 million
customers in 34 countries, it plans to put more focus on its 1.6
million priority retail customers and 400,000 business clients.
At 0553 EDT, Standard Chartered shares were little changed.
(Editing by Mark Potter)
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