The bank will continue to cut costs and headcount, but instead of winding up its base metals unit, it will merge the business with its precious metals trading desk.
Following objections from its majority shareholder, ICBC Standard Bank will not shut down its base metals business, according to a «Reuters» report.
«Following feedback from our clients and shareholders, we will be maintaining our base metals capabilities, whilst achieving some operating efficiencies by merging our precious and base metals business lines,» the bank told «Reuters,» adding that it would continue with plans to close its equities business.
This decision reverses a November announcement by the bank saying it would close down its base metals trading unit, which includes trading derivatives and physical markets, and trade finance, in the first half of 2020 because of unfavorable market conditions.
Streamlining Operations
The bank's restructuring was prompted by a first-half loss of $130 million, which it said in its mid-year report was the result of the U.S.-China trade war, «Reuters» reported.
In May, the bank said it would close its Tokyo metals branch by the end of 2019. This follows a shuttering of its metals desk in Dubai and streamlined operations at its New York office in recent years.
ICBC Standard Bank, 60-percent-owned by the Industrial and Commercial Bank of China, is a joint venture with Africa's largest lender Standard Bank. The firm is a major player in global base metals markets.
