Standard Chartered to lay off a quarter of its senior staff
Standard Chartered generates the majority of its profits from Asia, Africa and the Middle East Reuters

Standard Chartered shares dropped more than 4% during early trading in London on Wednesday, 1 November, despite the bank announcing that its third quarter profits beat analysts' expectations.

Pre-tax profit after adjustments was $814m (£612.5m) in the July to September period, a 78% improvement on the same period a year earlier.

The increase was mainly due to a 42% decline in impairments for bad loans and a 70% fall in other impairment charges. Analysts had expected underlying profits to come in at $809m (£608.8m).

Revenues increased 4% from a year earlier to $3.6bn (£2.7bn) in the third quarter, while net profits more than doubled to $774m (£582.4m).

"We are transitioning our businesses to deliver higher quality income to improve sustainable returns," Standard Chartered chief executive Bill Winters said.

"This process and the continued investments to support it are reflected in the results and will deliver greater long-term value to our shareholders."

Standard Chartered's expenses grew 4% in the third quarter to $2.5bn (£1.9bn), largely as a result of accelerated investments.

The firm, which generates most of its profits from Asia, Africa and the Middle East, has undertaken significant restructuring to reduce costs and increase its competitiveness over recent years.

It has revamped much of its leadership structure during that time, with Jose Vinals replacing Sir John Pearce as chairman in December 2016.