Global banking firm Standard Chartered plc is shuttering much of its global equities business, as part of a push to focus on its core business lines.
The London-based bank said Thursday it is closing its institutional cash equities, equity research, and equity capital markets businesses, which will save it approximately US$100 million in costs in 2016. For 2015, the savings are expected to offset associated restructuring costs.
While it is closing most of the global equities business, the bank said that it intends to continue to provide strategic advice to its clients on equity financing. It will also continue to develop its capabilities in convertible bonds, equity derivatives and macro-economic and fixed income research in support of its core businesses.
The move to close these equity businesses is part of its strategy to exit, or reconfigure, non-core and underperforming businesses. As a result of these efforts, it expects to generate at least US$400 million in cost savings in 2015.
About half of those savings, US$200 million, are coming from a shift in its retail clients strategy, which involves focusing on key cities, accelerating the move to providing services electronically, and closing branches. That initiative has resulted in around 2,000 job cuts in the last three months, the bank says, and it expects another 2,000 cut during 2015, primarily by attrition.
“We are well on track to deliver at least $400 million of cost saves for 2015, and we are now focusing on achieving further cost savings for 2016 and beyond as we continue creating capacity to invest in the group’s core businesses,” said the bank’s chief executive, Peter Sands.