The British bank Standard Chartered Plc reported the first drop in its annual profit in the last decade, driven by the lower revenues from South Korea, as the financial institution receives three-quarters of its revenue from Asia. The annual profit of the company before tax dropped to 6.06 billion USD, compared with 6.85 billion USD in 2013.
The CEO of the London-based Bank Peter Sands said that the purpose of achieving revenue growth of at least 10% has been limited by the poor performance in South Korea. The local unit reported a 1 billion USD more bad loans only for first fiscal half. In order to improve the financial results in January the bank merged the corporate and consumer banking. The CFO Richard Medings left his post as head of the Corporate Unit and his functions were taken over by Mike Rees, who is now responsible only for consumer banking.
“We continue to take actions against our most underperforming or problematic units, primarily in South Korea”, announced Sands in the financial report.
Late last year, the Standard Chartered Plc signed an agreement with Agricultural Bank of China (ABC) to provide clearing services in CNY on the territory of the United Kingdom.
The shares prices of the company received strong growth after the publication of the report. During the trading in London the stocks of the company were traded at 314.50 GBP, as the one day increase is 3.14%.