Standard Chartered Plc’s operating profit from its corporate bank may climb to about $10 billion by 2016 as the lender expands in emerging markets, Mike Rees, head of the division, told investors today.
The threat by a New York regulator to suspend Standard Chartered Plc’s banking license is stoking investor and analyst concern the business model that produced eight straight years of record profit is in jeopardy.
Standard Chartered Plc conducted $250 billion of transactions with Iranian banks over seven years in violation of federal money laundering laws, a New York regulator said in an order warning that the firm’s U.S. unit may be suspended from doing business in the state.
Standard Chartered Plc fell the most in almost 24 years as an analyst estimated it may face costs of $5.5 billion after being accused of violating U.S. money laundering laws over its dealings with Iranian banks.
Barclays Plc , Standard Chartered Plc and HSBC Holdings Plc , three of Britain’s biggest lenders, are toning down threats they made last year to leave London as pressure to break up commercial and investment banking eases.
Mike Rees, head of Standard Chartered Plc’s investment bank, was paid 10 million pounds ($16 million) in salary and bonus after profit at his wholesale banking division reached a record last year, the Sunday Times reported.
Standard Chartered Plc investors should vote against the bank’s executive pay report because it doesn’t disclose long-term bonus targets and Chairman John Peace helps set compensation, according to corporate governance adviser Pensions Investment Research Consultants Ltd.