Standard Chartered Tuesday announced plans to raise £3.3 billion ($5.1 billion) in capital through a rights issue, as the bank reported a pre-tax loss of $139 million for the three months through September.
The emerging market-focused bank also announced a strategic review that will see it cut 15,000 jobs, and focus more on affluent retail clients and less on companies and institutional clients, as part of a broader embrace of its more profitable, less capital-intensive businesses.
The rights issue has been priced at a 34 percent discount to Monday's closing share price.
Standard Chartered will issue two new shares at 465 pence each for every seven held to strengthen its balance sheet. It also scrapped its final dividend for the current financial year.
The performance marks a reversal of fortune for Standard Chartered, which for years had steered cleared of the difficulties that befell many of its rivals during the financial crisis by focusing on faster-growing markets in Asia and Africa. It also presents a clear priority for new chief executive Bill Winters, who made his name as a high-flying dealmaker at JPMorgan.