The emerging markets focused bank said it slid to a $1.5bn loss last year, a dramatic reversal of the $4.2bn profit it made in 2014.
Restructuring charges of $1.8bn were a big factor in turning what would have been a small profit into a loss. Earnings per share were just 6.6 cents versus 138.9 cents in 2014, and the company confirmed it will not be paying a dividend.
“While 2015 performance was poor, the actions we took on capital throughout last year and in particular in December have positioned us strongly for the current macro environment,” said chief executive Bill Winters. “We have a balance sheet that is resilient and we are in the right markets.”
Major shareholders in Standard Chartered include a number of UK asset managers including Aberdeen Asset Management, Legal & General Investment Management and Baillie Gifford.
The FTSE 100 was down overall, dipping back under 6000 point as it shed 40 points. Elsewhere in financial markets, the sterling stabilised after yesterday’s Brexit inspired 2% dip, moving down 0.2% against the US dollar to $1.411.
BHP Billiton, perhaps unsurprisingly given it is a mining company, had earlier reported a heavy loss of $5.67bn for its half year to December 2015. This was a big turnaround of the $5.35bn profit it made in the second half of 2014.
“The impact of lower commodity prices on mining companies was once again laid bare this morning as mining giant BHP Billiton reported a 54% plunge in underlying earnings for the first half of the year,” noted Ian Forrest, investment research analyst at The Share Centre. “Given this, and the news that the group now expects a prolonged period of volatile commodity prices, it was hardly surprising to see the company cut its dividend from 62 cents to just 16 cents. The company has therefore abandoned its long-held policy of maintaining or increasing dividend payments to shareholders.”
