Jobs cuts, part of restructing programme- Standard Chartered

About $3bn being raised in the rights issue will cover reorganisation costs.

The bank also said it was the subject of two investigations by the UK Financial Conduct Authority relating to monitoring of sanctions and anti-money laundering compliance.

Standard Chartered shares fell almost 10% in morning trading in London.

In Hong Kong shares closed down by 3.5%.

 

The restructuring was announced as the bank reported a "disappointing" third-quarter pre-tax loss of $139m for the three months to September. That compared with a profit of $1.5bn for the same period last year.

Revenue fell 18.4% to $3.68bn and losses on bad loans almost doubled to $1.23bn for the quarter.

The job cuts are part of a restructuring programme to take place over the next three years.

Standard Chartered gave few details about the staff reductions, but the figure could include businesses it plans to sell. It employs 86,000 people.

Bill Winters announced a strategic review of Standard Chartered when he took over as chief executive in June.

He put a new management team in place the following month and analysts had been expecting the bank to seek additional capital to shore up its balance sheet.

Mr Winters acknowledged the challenging business environment facing the bank.

"This is ... an aggressive and decisive set of actions to fundamentally shore up the underpinnings of the bank," he said on a conference call.

"We've tried to achieve a very high level of capitalisation to buffer ourselves against eventualities and we think we are very well capitalised to deal with any of the challenges that could come our way," Mr Winters added.

The bank was co-operating fully with the two FCA investigations, the chief executive said. Standard Chartered remains under investigation by US authorities related to transactions involving Iranian clients.

Michael Hewson, chief market

analyst at CMC Markets

, told Radio 4's Today programme that banks were being compelled to have bigger buffers to withstand future fiscal shocks - especially in Asia where banks such as Standard Chartered and HSBC were particularly exposed.

His concern was that Standard Chartered was "way behind the curve" on cutting costs.