The FINANCIAL — Standard Chartered Plc. on November 3 reported a loss before tax of $139 million for the third quarter, compared to a profit before tax of $1.53 billion last year, according to Nasdaq.
Income for the quarter declined to $3.682 billion from $4.514 billion in the previous year.
The results reflected business divestments and de-risking initiatives, along with challenging conditions in key markets including depressed commodity prices and the broader impact of the slowdown in China. Loan impairment charges remain at elevated levels.
The lender remains on track to deliver on the first year of its cost efficiency program announced earlier this year.
Separately, the company announced the outcome of its strategic review and a 3.3 billion pounds net of expenses, or about $5.1 billion capital raise.
The proceeds from the 2 for 7 fully underwritten Rights Issue will be used to strengthen the balance sheet materially and accelerate execution of the strategy.
The company also announced an increase in the gross cost reduction target announced in March to $2.9 billion over the four year period 2015 to 2018, to improve efficiency and fund investment, with a commitment to total costs in 2018 being below total costs in 2015.
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