Standard Chartered reports $1.5bn loss in 2015

The bank attributed the loss to "adverse external market conditions as well as the financial impact of planned management actions".

In its full year results published today, Standard Chartered says it has faced restructuring charges of $1.8 billion and a $863 million charge relating to the change in the methodology for estimating credit and funding valuation adjustments.

Underlying operating income totalled $15.4 billion, down 15% on the previous year.

The bank has now announced that it plans to deliver $2.3 billion in cost savings by the end of 2018, and confirmed that the Group has reduced the amounts
paid out in incentives to staff by 22%, paying no bonuses to executive directors.

After a Q3 loss of $139m, Standard Chartered announced a new strategy to create a "lean, focused and more profitable bank", including restructuring $100bn of assets and a "simplified organisational structure" which will include cutting 15,000 roles by 2018.

Compared to a $4.2bn profit in 2014, Chief executive Bill Winters described the bank's annual performance as "poor".

Bill Winters said:

“While 2015 performance was poor, the actions we took on capital throughout last year and in particular in December have positioned us strongly for the current macro environment. We have a balance sheet that is resilient and we are in the right markets.

"We have identified our risk issues, and we are dealing with them assertively. We are making good progress on executing our strategy, creating a bank that will generate improved financial performance over time following from our improved cost efficiency, tightened risk controls, and focus on our many core advantages.”