ICBC Standard Bank plans to shut base metals, equities units
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 unfavourable market conditions to ensure a position of long-term, sustainable strength,” said CEO 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 said in August that it would close the base metals desk at its risk-management unit. Goldman Sachs Group Inc, 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 Group.
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