Profits at Standard Chartered plunged 84 percent last year, its worst result since 1998, sending the bank's shares down as much as 10 percent. As Jagdip Cheema reports volatile markets, weak commodity prices and low interest rates took their toll.
It's been a difficult few month's for Standard Chartered . And it's shareholders were hoping for some positive news. But the bank's tale of woes continued after it announced a pre tax loss of $1.5 billion, it's first annual loss since 1989. Underlying pre-tax profits also fell by 84% to $800 million. Standard Chartered has been hit by the recent volatility in emerging markets and falling commodity prices. Jane Foley is from Rabobank (SOUNDBITE) (English) RABOBANK, SENIOR CURRENCY STRATEGIST, JANE FOLEY, SAYING: "What we've seen more recently over the last year or two is emerging markets really losing their grip as an engine of world growth and of course that's really come to bite Standard Chartered." Recently appointed Chief Executive Bill Winters is now under pressure to deliver. He's announced that none of his management team will receive a bonus for 2015. That's on top of a decision last November to axe 15,000 jobs and a fund raise of $5.1 billion to shore up the firms balance sheet. However share holders were not impressed with the results, the bank has now seen six successive quarters of lower revenues. Shares dropped by over 10% - that's on top of a 22 percent drop they've already suffered in 2016.