(Repeats for Asian morning distribution. No change to text.)
* Corporate, institutional banking makes up bulk of revenue
* Job cutting to start this week across major centres
* First major move by division CEO and former HSBC banker
By Anshuman Daga and Sumeet Chatterjee
SINGAPORE/HONG KONG, Nov 28 Standard Chartered
is set to cut about a tenth of its global corporate and
institutional banking headcount, sources with direct knowledge
of the matter said on Monday, as the bank steps up an aggressive
drive to cut costs.
Chief Executive Bill Winters this month branded the bank's
income and profit unacceptable, as below-forecast third-quarter
results underlined the challenges facing his overhaul.
The job cuts will be rolled out beginning this week across
all the major business centres starting with Singapore and Hong
Kong, one of the sources told Reuters. All the sources declined
to be named because they were not authorised to speak to the
"We are making our corporate and institutional banking
division more efficient," a Standard Chartered spokesman said,
without revealing how many jobs are to be axed.
"Removing duplication in roles and managing our costs to
protect planned investments in technology and people means that
a small number of existing roles will be impacted."
Former JPMorgan investment banker Winters has
already moved to close the stock trading business and raise $5.1
billion in capital.
These efforts have paid off for Standard Chartered's bottom
line, and its third quarter result marked a second consecutive
quarter of profit after it swung to an annual loss for 2015,
when it was hit by the costs of revamping its management team.
Winter also said in November last year the bank would cut
15,000 jobs. It was not immediately clear whether the cuts in
corporate and institutional banking formed part of that.
The latest headcount cut marks the first major move by
former senior HSBC banker Simon Cooper who joined in
April as chief executive of corporate and institutional banking.
Cooper has been working to overhaul and streamline the
structure of the corporate and institutional banking division,
the largest unit of the bank accounting for more than 46 percent
of its operating income in the six months ended June.
It was not immediately clear how many of the global total of
84,477 employees at the British bank at the end of June were in
Returns from the bank's corporate and institutional banking,
which includes corporate finance and transaction banking, were
hurt by loan impairments and high expenses, Standard Chartered
said in last year's annual report.
In the quarter ended September, Standard Chartered corporate
and institutional banking income dropped 7.5 percent from the
year-ago period to $1.6 billion, pulling the bank's total
operating income down nearly 6 percent.
Separately, the bank said Ajay Kanwal would step down from
his role as regional CEO for ASEAN and South Asia with immediate
effect. Anna Marrs, CEO of commercial and private banking, will
add the role to her existing position.
In a statement issued by Standard Chartered, Kanwal, who had
been with the bank since 1992, said he had resigned after he
failed to disclose his past personal investments outside the
"Though I do not own these investments any more, as a senior
leader my actions should be beyond reproach. Hence with regret I
have decided to tender my resignation," he said.
Kanwal, whose senior roles at Standard Chartered
included regional CEO for North East Asia and CEO for Taiwan,
could not be immediately reached for comment by Reuters.
(Reporting by Anshuman Daga and Sumeet Chatterjee; Additional
reporting by Lawrence White in London; Editing by Muralikumar