<p>Standard Chartered Plc announced plans on Tuesday (03 November) to raise $5.1 billion in new capital via a rights issue, as well as new goals for cost cutting and core capital ratio as new Chief Executive Bill Winters set out his strategy for the lender.<br><br>The announcement came as Asia-focused Standard Chartered (StanChart) posted a third-quarter operating loss of $139 million due to growing regulatory costs and rising loan impairments in India.<br><br>The capital-raising plan came as part of a completed strategic review, that will also see the bank restructure businesses that together consume $100 billion in risk weighted assets, one-third of the group's total.<br><br>Those include exiting low returning client relationships worth $50 billion and trimming $30 billion of risk weighted assets in some unnamed underperforming countries.<br><br>StanChart shares fell 4 per cent in Hong Kong after the announcement, while the benchmark Hang Seng Index was up 1.3 percent.<br><br>The capital raise and restructuring will together push the bank towards a new common equity tier-1 capital (CET1) ratio goal of 12-13 percent, the bank said.<br><br>The bank's current CET1 ratio - a core measure of financial strength - fell slightly in the third quarter to 11.4 percent, StanChart said in its results filing to the Hong Kong Stock Exchange.<br><br>The loss for the July-September quarter compares with a $1.5 billion profit in the same period a year ago.<br><br>StanChart formally reports earnings every half-year, but since 2013 began giving more details of quarterly progress in its 'interim management statement'.<br><br>StanChart also said it will not pay any final dividend for the financial year ending 31 December, 2015.<br><br>(Reuters)</p>
