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.
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
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.