Standard Chartered rallied 5.4 % to 976p on the news, aiding the FTSE 100 finish the day up 14 points or 0.2 % at 6,950. Investors approved the appointment of the former JP Morgan investment bank boss to take over from Peter Sands.
The Royal Bank of Scotland weighed on the index following the bank posting its seventh straight annual loss.
RBS was among the largest FTSE 100 fallers which was down 4.1 % at 386.6 points following a report of a £3.5 million loss for 2014 caused by the writing down value of its U.S. business Citizens which has sold the pegged index that rose 13 points or 0.2 % to 6, 937.
RBS was able to make an operating profit of £3.5 billion, although this fell rather short of investor expectations, weighing down by £1.3 billion of restructuring costs and £2.2 billion in costs related to the bank’s delinquency.
That the £2.2 billion includes charges related to RBS’s part on the foreign exchange rigging scandal, compensation for clients misplaced payment protection insurance and interest rate hedging products and the aftermath of its IT failure back in 2012.
It took far longer than anyone would have guessed in rooting out all the past problems, practices and related charges and there are still many more hurdles still yet to be considered.
There is definitely a change in the culture of many banks and the goal many investors is eying is that shareholders must not be exposed to this scale of conduct risk in the future.
The former boss of RBS who is presently in charge of RSA Insurance Group announced the annual profit of £275 million for 2014, fluctuating from a £244 million loss in 2013.
The dividends would resume with a final payment of 2p per share following the scrapping of the same last year in order to raise cash for the business. However, the results fell short of investor expectations, which sent the shares 4.7 % down 429.1p.
Reed Elsevier plummeted 4.8 % £11.30 albeit the posting results in line with expectations. The shares were up almost 30 % since mid-October, yielded to profit taking.
Finally, house builders were able to recover some of the losses that it incurred in the week on fears of interest rate rises following the Bank of England policymakers predicted that the said inflation pressures might gain momentum.