Standard Chartered
Standard Chartered generates the majority of its profits from Asia, Africa and the Middle East Getty Images

Standard Chartered has reported a return to full-year profit for 2016 and warned that "challenging" market conditions would persist through this year.

Profit before tax came in at $409m (£326.3m) for the 12 months ended 31 December, compared to a loss of $1.52bn in 2015.

Chief executive Bill Winters said the firm had made "good progress" towards cleaning up its balance sheet but suggested that he was not fully satisfied with the financial performance.

"Our financial returns are not yet where they need to be and do not reflect the earnings capability we believe we possess," he said.

"Having worked hard to secure our foundations, we are now focused on realising this earnings potential."

Standard Chartered announced that it would not be paying a dividend for 2016 despite a return to profitability.

Its shares opened more than 4% lower in London on the news.

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 the past two years.

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