Standard Chartered's share price has plummeted this morning, as the bank warned on full year earnings after revealing falling profits for the third quarter.
Shares in the lender had dropped 10 per cent in mid-morning trading, after it revealed pre-tax profits fell more than 16 per cent to $1.5bn (£930m) in the three months to the end of September. Year to date operating profit has dropped 19 per cent to $4.8bn.
Operating income rose one per cent to $4.5bn, but expenses rose four per cent. It also had a $539m impairment charge.
“The increase in loan impairment related to a small number of accounts, primarily in the corporate and institutional clients segment, some of which have been affected by weak commodity markets," it said in a statement.
Group chief executive Peter Sands said trading conditions remained subdued, but noted there had been a “modest return to year on year income growth during the quarter”.
He added: “We are executing our refreshed strategy, including reprioritising investments, exiting non-core businesses, de-risking certain portfolios and reallocating capital.
“To create more capacity for investment in the many opportunities in our markets, we are taking further action on costs, targeting more than $400 million in productivity improvements for 2015.
“We also continue to make progress in reshaping Korea. Whilst some of these actions will impact near term performance, they are crucial to getting us back to a trajectory of sustainable, profitable growth."
In admitting underlying profits for the second half would be less than the same period last year, Sands said the business was “taking action on multiple fronts, both to respond to near-term challenges and to deliver against our refreshed strategy”.
“We will provide further details of these actions during our investor presentations in November,” he added.