Due to a significant plunge in full-year profits, board members at Standard Chartered have agreed to forfeit their bonuses.
Figures including an increase in losses made on bad loans from $1.62bn to $2.14bn, and a 2% decline in operating income, are all factors in the financial results.
Chief executive, Peter Sands has expressed the disappointment in the bank’s 2014 performance saying it was ‘impacted by a challenging market environment and by the significant programme of restructuring and repositioning actions taken during the year’ and citing ‘negative sentiment towards emerging markets, a sharp drop in commodity prices, persistent low interest rates and surplus liquidity, low volatility, and a welter of regulatory challenges’ as the reasons.
In the previous year, the bank delivered three profit warnings arising as a result of tough market conditions. Now, in order to begin cutting down on outgoings, the bank are looking to abandon 15 businesses that are considered to be ‘underperforming and non-strategic.’
In 2013, the bank’s pre-tax profits were down 30% to $4.24bn.