Standard Chartered stands by chief executive

July 24, 2014 - 1:11:31 pm

LONDON: Standard Chartered bank stood behind its top management on Thursday after a report pointed to a possible boardroom shake-up at the bank which is focused on emerging markets.

"The board of Standard Chartered notes rumours in some media outlets on succession planning for the group chief executive, and chairman," said a statement issued to the London stock market.

"The board wants to be absolutely clear that it is united in its support of both (chief executive) Peter Sands and (chairman) Sir John Peace, and the management team, in delivering the refreshed strategy, restoring the bank to profitable growth and delivering returns for our shareholders."

The Financial Times had reported that Peace himself is weighing a succession plan under which long-serving Sands would be replaced.

Peace may himself resign once a new chief executive is settled into the post, the business daily added.

The FT said that "Peace has been urged to conduct a search both internally and externally over the next 12 months", citing three people familiar with the matter.

Standard hit back saying: "We do not accept these media rumours. No succession planning is taking place as a result of recent investor pressure."

The London-based bank had warned last month that its operating profit for the first half of 2014 would be 20 percent lower compared to the outcome in the same period last year, citing "difficult trading conditions".

It said that stronger income from regions such as China and Africa had been offset by weaker performance in India, South Korea and Singapore.

Standard Chartered makes about 90 percent of its profits in Asia, the Middle East and Africa. (AFP)



 



 

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