Standard Chartered ‘United’ in Its Support of C.E.O., Board Says

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Peter Sands, chief executive of the British bank Standard Chartered, in 2011.Credit Bobby Yip/Reuters
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LONDON — The British bank Standard Chartered on Thursday denied media reports in Britain that it was preparing a succession plan for its chief executive under pressure from investors.

The bank, which earns most of its profit in Asia, said in a statement that its board of directors was “united” in support of Peter Sands, the bank’s chief executive, and John Peace, its chairman.

Standard Chartered said no succession planning was taking place as a result of “recent investor pressure” and dismissed the reports as “media rumors.”

“Robust and considered succession plans are in place for all of the senior leaders,” the bank said. “We take our board succession extremely seriously and discuss this topic with our shareholders on a regular basis. We will ensure orderly succession takes place at the appropriate times, and only in a responsible manner consistent with full market transparency.”

The Financial Times, citing unidentified people familiar with the matter, reported on Wednesday that Mr. Peace had been urged to undertake succession planning for Mr. Sands and might step down once a new chief executive was chosen. The Times of London reported that Mr. Sands was facing pressure from investors.

The news comes as Standard Chartered’s stock price has been under pressure since the bank announced last month that its first-half operating profit would be down significantly from the first six months of 2013.

Shares of Standard Chartered fell 0.3 percent in afternoon trading in London on Thursday.

In June, Standard Chartered warned that its operating profit for the first half of the year would be down by 20 percent from the first half of 2013, driven by declines in foreign exchange and interest rate trading because investors had pulled back from those markets.

The bank reported an operating profit of $4.1 billion in the first six months of 2013, which excluded a good will impairment and credit adjustment.

Standard Chartered is expected to report its first-half results on Aug. 6.