Financial News

  • 7 August 2014, 9:14

Standard Chartered's Profit Slumps By 20%

Standard Chartered endured a tough first half as it saw its profit plummet by 20%.

The bank reported a pre-tax profit of $3.3bn (1.9bn) for the six months to June 30.

It comes as Standard Chartered said it faces fresh fines in the US over money laundering.

Regulators in New York have discovered more problems with the bank's surveillance system, which is used to monitor and prevent money laundering.

It is thought the latest issues could cost Standard Chartered between $100m (59m) and $340m (202m).

In 2012 the bank was fined $667m (396m) by US regulators for breaking sanctions on Iran by hiding transactions and not using robust anti-money laundering systems.

Standard Chartered's weak performance for the first half of the year follows a profits warning in June.

The bank blamed tighter banking regulation and lower market volatility.

Last year, the bank announced its first drop in full-year profit for a decade.

Commenting on the latest results, group chief executive Peter Sands, said: "Our performance this first half is clearly disappointing.

"We're taking action on multiple fronts, both in response to near term pressures and to execute our refreshed strategy, with the objective of getting back to a trajectory of sustainable, profitable growth."

Despite speculation that pressure was mounting on Mr Sands to step down, the bank said earlier this year that its board backed him in restoring profitable growth.

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