Standard Chartered takes a plunge after its profits disappoint

Standard Chartered shares have tumbled after the bank admitted its performance was “not acceptable” and profits fell well shy of City forecasts.

The pan-Asian bank is still reeling from regulatory issues, including fines and possible criminal prosecutions over alleged breaches of US sanctions against Iran.

Today chief executive Bill Winters said the last quarter had been tough.

“We now have a stronger balance sheet, reduced concentrations and are becoming more efficient, but income and profit levels are not yet acceptable.”

The bank made a profit of $153 million (£125 million) for the three months to September, which was well short of expectations.

The shares dropped by 46p, 6.5%, to 666p. Mike van Dulken at Accendo Markets, said: “Shares in Asia-focused Standard Chartered are leaking most on the FTSE 100 this morning after Q3 profits missed consensus.

“Management highlighting still elevated loan impairments and expectations for markets to remain challenging is a message investors don’t want to hear.”

Standard Chartered is fighting off regulatory issues in the US and Hong Kong, where watchdogs are looking at its role in a flotation in 2009.

StanChart is spending more than $1 billion a year on “regulatory expenses”, it says.

Overall revenue was down slightly at $3.46 billion.

The bank roared back into profit this year after an awful 2015 when it fell into the red for the first time since 1989.

Bad loans led to a $1.5 billion loss.