Disappointment over a lack of a return to the dividend list saw shares in Standard Chartered PLC (LON:STAN) fall today despite the bank posting a return to profit in 2016.
In early morning trading, StanChart shares in the FTSE 100 index were down 3.8%, or 28.6p at 722.4p.
The emerging markets-focused bank reported a statutory pretax profit of US$409mln for the year to December 31 2016, after reporting its first loss in more than a quarter century in 2015 of US$1.5bn on rising costs and bad loans.
The 2016 profit beat the US$366mln expected by analysts.
However, the lender said it would not pay a dividend for 2016 as its restructuring is still ongoing and it faces regulatory uncertainty.
The FTSE 100-listed firm’s group chief executive, Bill Winters, who has instigated a major restructuring programme at the lender said: “Our financial returns are not yet where they need to be and do not reflect the Group's earnings potential.”
Since taking the helm in June 2015, Winters has axed more than 15,000 jobs, closed the bank's stock trading business and overhauled its management team.
Despite the modest profit growth, the lender still increased its staff bonus pool by 5% to reflect growth in its underlying profits. Rival banks have mostly cut staff payouts this year.