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Standard Chartered, like many of its industry peers, is seeking to cut costs and shed underperforming businesses. Photo: Sam Tsang

Standard Chartered chief Bill Winters sets out priorities on first day

Bill Winters says StanChart must simplify operations and boost finances

Standard Chartered chief executive Bill Winters told staff on his first day in the office yesterday that the Asia-focused bank must strengthen its finances and simplify operations to boost returns.

Winters' predecessor Peter Sands closed of much the bank's equities business and sacked 4,000 staff but that was not enough to reverse the company's underperformance and save his job.

"We need to reinforce our foundations, streamline our business, strengthen our financial position and re-orient the bank for better returns on our capital," Winters said in a letter to staff. "Our capital strength is a key priority. Capital strength is a competitive advantage, especially in tough economic times. We are reviewing all aspects of our capital strength as part of our broader business review."

Addressing concerns about the bank's capital strength is Winters' top priority, and some investors and analysts have said he needs to raise at least US$5 billion from a rights issue and cut the dividend.

Our capital strength is a key priority. Capital strength is a competitive advantage, especially in tough economic times
Bill Winters, Standard Chartered chief

Winters, 53, was previously co-chief executive of JPMorgan's investment bank. He left in 2009 after falling out with JPMorgan Chase chief executive Jamie Dimon.

Winters, originally from New York but with dual US and British citizenship, then became one of five members of a British government commission that analysed how banks could be made structurally safer and set up London-based hedge fund Renshaw Bay.

Winters said in the letter he would announce the bank's leadership team after the summer and provide details of his broader plans by the end of the year.

Against the backdrop of a series of fines for banks for bad behaviour, including on Standard Chartered for lax US anti-money laundering controls, Winters also laid down the law on ethics.

"Our ethical standards must be beyond reproach and we must play a robust role in the global fight against financial crime," he said. "That is a key role for any bank in the world today andis one that we will continue to embrace."

Standard Chartered is among many banks seeking to cut costs, axe underperforming businesses and streamline to try to increase profitability, which has been hurt in recent years by tougher regulations.

This article appeared in the South China Morning Post print edition as: New global chief sets out priorities for recovery
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