Standard Chartered’s operating profit fell 16.4% in the third quarter of the year to $1.53bn from $1.83bn a year ago primarily due to higher impairment losses.
Impairment losses on loans and advances and other credit risk provisions in the third quarter was $536m, up from $288m a year ago.
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In an interim management statement, the Asia-focused lender said operating income was $4.51bn, while it totaled $4.47bn last year.
Retail banking segment reported third quarter operating income of $1.5bn, up from $1.44bn a year earlier.
The bank said it would target a further $400m in cost reductions for 2015. As part this plan it will cut branches and sell more non-core assets .
"While some of these actions will [affect] near-term performance, they are crucial to getting us back to a trajectory of sustainable, profitable growth," Peter Sands, group chief executive said.
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By GlobalDataThe bank also expects second-half underlying profit to be lower than a year earlier, partly due a higher U.K. bank levy, regulatory and restructuring costs.
