StanChart man quits over job cuts

STANDARD Chartered was rocked today by the abrupt resignation of board member and head of Greater China operations Peter Wong after he reportedly disagreed about a cutback in retail banking staff in Hong Kong.

The unexpected departure will be a setback for the bank's ambitions in East Asia, which has been a major focus for the emerging markets lender as economies in the region boom and incomes climb.

Wong joined the bank in April 1997 as head of consumer banking for Hong Kong and China. He became chief executive of Greater China operations in 2000, and was made a director in January 2002.

'I am saddened by Peter Wong's decision to leave the bank and I wish him every success,' said group chief executive Mervyn Davies.

The bank did not give a reason for Wong's resignation, which takes effect on Friday.

However, a Hong Kong newspaper which today reported his departure linked his decision to disagreements over last week's firingof 200 retail banking staff. The bank, which makes two-thirds of its profits in Asia, dismissed 200 retail banking employees in Hong Kong, saying the 5% cut was needed to boost efficiency. The clearout raised eyebrows as the Hong Kong economy has been on the mend this year after a prolonged slump, and Standard Chartered reported record local earnings in the half-year to June.

Wong had defended the firings, saying they were part of a shift toward wholesale banking. He added that the operating environment in Hong Kong remained challenging.

In a bid to soothe investors' nerves, Davies said: 'We remain absolutely committed to growing our business both in Hong Kong and Greater China.'

Wong's Greater China responsibilities will be taken over by his Hong Kong deputy Peter Sullivan, who has been at Standard Chartered for 10 years and previously ran the bank's African operations from its base in London.

Standard said that Ben Hung, head of investor relations in London, would return to Hong Kong as chief operating officer, reporting to Sullivan.

Today's upheaval marks the second time in two weeks that Standard Chartered has made unwanted headlines.

Major shareholder the Khoo family recently criticised the bank's senior management for speculating about what they may do with their 13.5% stake.

Among Wong's chief responsibilities was sealing a deal to take major stakes in a number of Chinese lenders.