Stanchart says profits to fall after first half of 2014 earnings drop by 20%
Published on Jun 27, 2014 10:36 AM
LONDON (REUTERS) - Standard Chartered warned profits would fall in 2014 for the second year in a row after first-half earnings dropped by a fifth due to tougher regulations and low market volatility in its trading business.
The bank also said on Thursday the head of its financial markets arm, Lenny Feder, would take a one-year sabbatical and would not return in the same role. An industry source had told Reuters earlier that Feder would take a sabbatical.
Standard Chartered makes more than three-quarters of its profits in Asia, Africa and the Middle East, which helped it come through the 2008 financial crisis relatively unscathed. But after a decade of sustained growth, the bank has had a rocky patch and been hit by big losses in Korea, a slowdown in its main Asian markets and the impact of tougher regulations.
Last year, the bank reported its first drop in full year profits for a decade and it had been expected to show a 4 percent rise to about $7.2 billion this year, according to the average analyst forecast on Reuters Eikon.
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