Standard Chartered is planning to shut down up to 100 branches next year in Asia, Africa and the Middle East, in a bid to reduce costs and boost profits.
The lender, which comprises a global network of 1,248 branches, expects to reap annual savings of $400m through this move.
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Out of the $400m in cost savings, about $200m is expected to come from the retail banking unit, which includes the shutting down of branches.
The bank said that returns at its retail bank were being adversely impacted by high costs. It also focused on its plans to focus more on its 1.6 million priority retail customers and 400,000 business clients.
The bank has issued three profit warnings this year and has been dealing with tough market conditions, with its London-listed shares dropping by over 30% this year.
Last month, the bank’s third quarter operating profit dropped by 16% compared to the previous year owing to business restructuring and rise in bad loans, especially in Asia.
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By GlobalDataThe lender posted record earnings for 10 years till mid-2012 when it had to pay $667m for violating US sanctions on Iran, and has since been hit with increasing bad debts in key markets including China and India.
Andy Halford, the bank’s finance director, said, "We recognise our recent performance has been disappointing and are determined to get back on to a trajectory of sustainable, profitable growth, delivering returns above our cost of capital."
