Standard Chartered shares dropped by 3 per cent on Friday as the lender returned to gain but held off on paying a dividend as it grapples with prices from chief executive Bill Winters’s restructuring plan.
StanChart made a statutory pretax gain of US$409 million for 2016, a year after reporting its first loss in more than a quarter century on poor loans and increasing prices.
The bank said it wouldn’t pay a dividend for 2016, yet, it confronts regulatory uncertainty and as its restructuring continues to be continuing, chief financial officer Andy Halford told reporters on a conference call.
The result surpass against the US$366 million anticipated by analysts, Thomson Reuters data revealed.
“Our monetary returns aren’t yet where they should be and don’t represent the Group’s earnings potential,” CEO Winters said in the statement.
The bank’s shares dropped 3 per cent by 0907 GMT in London.
Since taking the helm in June 2015, Mr Winters has axed more than 15,000 jobs, closed the bank’s stock trading company and passed its management team as he seeks to restore a thinned-down StanChart to growing profitability.
Mr Winters last November branded the income and gain amounts of the bank unacceptable as the emergent markets-centered bank missed out on fender trading gains reaped by opponents more centered on Europe and America.
While payouts this year have largely cut even with the quiet gain increase, its staff bonus pool raised by 5 per cent to represent increase in its underlying gains.
StanChart reported a US$215 million loss from its position in Indonesian lender PT Bank Permata Tbk, on restructuring costs and climbing bad loans.
StanChart is trying to lessen its interests to one thing to comply with regulations in the Southeast Asian country, either by selling its position in the neighborhood lender or merging its division with Permata.
Indonesian tycoon Tahir last month expressed interest in purchasing Permata all, beginning with the position of StanChart.