Standard Chartered on Tuesday said it would cut $700 million in costs and exit smaller businesses, as part of the lender's new three-year strategy overhaul to boost growth.
The bank plans to achieve return on tangible equity of at least 10 percent by 2021, from 5.1 percent last year, and intends to distribute to shareholders surplus capital not deployed to fund additional growth.
Earnings growth and divestment are likely to generate that surplus capital, it said in the earnings statement, adding planned exits and the run-down of low-return businesses include discontinuing ship leasing and completing the sale of its private equity arm.
"We will achieve this through relentlessly focusing on where we have a distinct competitive advantage, attacking the residual causes of lower returns and ramping-up innovation and productivity," Chief Executive Bill Winters said in a statement.
StanChart shares have fallen 40 percent since Winters, a former JPMorgan Chase & Co banker, took over the bank in June 2015. Last year, the bank's London shares dropped 22 percent compared with a 15.6 percent fall for rival HSBC Holdings.