News24
08 Nov 2019, 23:40 GMT+10
ICBC Standard Bank, a venture between the biggest lenders in China and Africa, will close its base metals and equities businesses because of poor performance and difficult market conditions.
The changes will affect 150 jobs and will take place in the first half of 2020, according to a statement from the London-based lender. The bank will keep other businesses, including precious metals and energy, and the decision is subject to shareholder approval.
"We are addressing our cost base and are taking measures against a backdrop of continuing unfavorable market conditions to ensure a position of long-term, sustainable strength," said Chief Executive Officer Wenbin Wang. "If the closures are approved, we will work on an orderly wind down of client positions."
The closure comes amid a period of heightened turmoil in the raw materials industry as the trade war, slowing economic growth and shifts in technology disrupt traditional markets.
Other commodity traders have struggled in the current environment. Cargill Inc. said in August that it'll close the base-metals desk at its risk-management unit. Goldman Sachs, for decades Wall Street's dominant commodities trader, also made cuts to the division earlier this year, a person familiar with the matter told Bloomberg News in March.
ICBC Standard Bank, also known as ICBCS, is 60% owned by Industrial & Commercial Bank of China and 40% by Standard Bank [JSE:SBK].
The bank suffered a $15m loss last year after declining appetite for emerging-market risk and reduced investment flows hit its trading business. US sanctions against aluminum producer United Rusal also sparked volatility in its base-metals business.
Market conditions have continued to deteriorate for the group. Standard Bank wrote down the value of its holding in ICBCS to $220m at the end of September, from $383m previously. It's engaging with ICBC to determine the best way forward for the business, it said in a filing last month.
The base metals business includes aluminum, cobalt, copper, nickel, lead, tin and zinc, according to its website. It also has precious metals, crude oil and refined oil products businesses with offices in London, New York, Singapore and Shanghai.
Get a daily dose of Taiwan Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Taiwan Sun.
More InformationBATTLE CREEK, Michigan: In a major consolidation of iconic food brands, WK Kellogg has agreed to be acquired by the owner of Ferrero...
WASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...
SAN FRANCISCO, California: Nvidia, the Silicon Valley chipmaker at the heart of the artificial intelligence boom, this week briefly...
REDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
CONCORD, New Hampshire: A federal judge in New Hampshire issued a crucial ruling on July 10 against President Donald Trump's executive...
DUBAI, U.A.E.: A cargo ship flagged under Liberia, known as the Eternity C, sank in the Red Sea following an attack executed by Yemen's...
WASHINGTON, D.C.: The Trump administration has started sending some weapons to Ukraine again, just a week after the Pentagon told officials...
ECAULT BEACH, France: On clear days, the white cliffs of the United Kingdom, are visible from northern France, where men, women, and...
ATLANTA, Georgia: The United States is facing its worst measles outbreak in more than three decades, with 1,288 confirmed cases so...
In the past month alone, 23 Israeli soldiers have been killed in Gaza—three more than the number of remaining living hostages held...