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Home » Retail Banking 2020 Insights » Morning Briefing: StanChart halves dividend, to remain in UK

Morning Briefing: StanChart halves dividend, to remain in UK

Standard Chartered reported a sharp fall in profit and halved its dividend on Wednesday but said it was yet to decide whether it would need to raise capital. Bill Winters, the bank's new chief executive, also said it would keep its headquarters in the UK as the recent Budget had taken "one of the big issues off the table".

The budget cut the bank levy and set in place plans to replace it with a corporation tax surcharge. "We were happy with [the] Budget, which took one of the big issues off the table," said Mr Winters.

The bank reported a 37 percent drop in first-half net profit to $1.46 billion from $2.31 billion for the same period in 2014, as it suffered from lower revenue and a rise in bad loans — which rose to $1.65 billion from $846 million

Deutsche sacks two trading executives

Deutsche Bank has sacked two senior trading executives amid allegations of lax supervision of two junior employees whose communications with clients allegedly violated the bank's policies, according to a Wall Street Journal report.

The report said executives told employees on Wednesday that Ben Solomon (head of securitised-products trading) and Ashish Jain (head of securitised-products sales in the Americas) had been terminated.

The junior traders, Aaron Greenberg and Joe Reardon, were fired over a month ago for allegedly lying to clients over the pricing of commercial mortgage bonds, according to the report.

Greek banks rout continues

The collapse in Greek bank shares continued for a third day yesterday as the banking index ended 27 percent lower, bringing the three-day rout since markets opened on Monday to 63 percent.

Hedge funds investigated over RBS sell-off

Regulators in the UK are expected to look into claims that hedge funds made millions of pounds through using inside information to short-sell shares in RBS.

There was a sharp rise in the number of shares being shorted between the bank's interim results last week and the government's £2.1 billion share sale on Monday, amid suspicions that some traders knew about the sale in advance.

M&T Bank says it's under federal investigation

In the US, M&T Bank has revealed in a securities filing that its mortgage-lending operations are under investigation by federal authorities.

The bank said it is in talks to settle the investigation into whether it complied with underwriting guidelines for loans insured by the Federal Housing Administration and for mortgages sold to Fannie Mae and Freddie Mac.

Law on credit bureaus passed by Pakistan

The National Assembly in Pakistan passed The Credit Bureaus Bill, 2015 on Wednesday to provide a comprehensive legal and regulatory framework for credit bureau business in the country.

The draft law seeks to regulate the business of private credit bureaus in Pakistan, providing a comprehensive legal and regulatory framework for the incorporation and functioning of credit bureaus.

ANZ launches $3bn capital raising

ANZ has launched a $3 billion equity raising to meet new, stricter capital rules, after it revealed third-quarter earnings that were hit by a rise in bad debts.

The bank revealed that cash profit for the nine-months to the end of June rose 4.3 percent to $5.4 billion. It will announce full third-quarter results later this month.

Westpac cuts off payday lenders

Also in Australia, Westpac is to stop serving customers who provide payday loans and has therefore announced it will cut off Cash Converters and cash advance company Money3 from its banking and financial products.

The move follows strong criticism of short-term lenders by regulators.

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