Standard Chartered halved its dividend and said it would raise capital from investors if needed, as new chief Executive Bill Winters outlined his thoughts on reviving a bank hit by a 44 percent slump in first-half profit.
Shares in the Asia-focused lender rose 4.5 percent to 994.9 pence on Wednesday as investors welcomed Winters' move to set a target to double return on equity to a minimum of 10 percent.
That helped offset disappointment over the cut to the dividend for the first half of the year to 14.4 cents a share from 28.8 cents a year ago. The bank said it had "rebased" the payout to reflect its "current earnings expectation and outlook".
As a result of the cut, StanChart said its common tier 1 equity position, a key measure of capital strength, had risen 80 basis points to 11.5 percent, six months ahead of target.
Winters, who became CEO in June, did not rule out raising capital in future. "If we decide we need capital for the long-term benefit of the group, we will raise capital," he said.