Standard Chartered says no succession planning concerning its chief executive is being undertaken due to any shareholder pressure, responding sharply to media speculation of such action.

Standard Chartered, the UK-listed bank that earns the bulk of its revenues in regions such as Asia, has issued a sharp knock-down to media speculation that it is looking to oust existing chief executive Peter Sands. A report by the Financial Times claims the chairman, Sir John Peace, was looking at succession plans after the bank had warned of disappointing results.

“The board wants to be absolutely clear that it is united in its support of both Peter Sands and Sir John Peace, and the management team, in delivering the refreshed strategy, restoring the bank to profitable growth and delivering returns for our shareholders,” Standard Chartered said in a statement to the London Stock Exchange late yesterday.

“Robust and considered succession plans are in place for all of the senior leaders. 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 in a responsible manner consistent with full market transparency. We do not accept these media rumours. No succession planning is taking place as a result of recent investor pressure,” the statement said.

The FT said that Sir John Peace has been urged to conduct a search both internally and externally over the next 12 months. The report, which cited three unnamed sources, said Peace might resign once a new chief executive is established in the role.

The report noted that Sands is one of the world’s longest-lasting bank chief executives, having led his institution through the financial crisis and beyond. However, with shares in the bank having fallen 34 per cent in 16 months and the bank signalling weaker profits, this has led to shareholder unrest, it said.

As was reported in June, Sands said in a statement giving relatively few figures: “This has been a disappointing first half, with difficult trading conditions, particularly in financial markets. We are making good progress against our refreshed strategy and are taking the right actions in response to a challenging environment – managing costs very tightly, disposing of non-core businesses and optimising the deployment of capital. As we navigate this difficult period, we remain focused on the drivers of value creation for our shareholders, continuing to build our franchise to make the most of the enormous opportunities in our markets.”

However, the bank said that the “momentum of most of the group’s businesses remains in line with expectations. The primary exception is financial markets, which continues to be impacted by the challenging external environment, alongside the rest of the industry”.

“Whilst expectations for the group’s first half performance remain ahead of the second half of last year, group income in the first half of 2014 is expected to be down by a mid single digit percentage on the first half of 2013, or by a low single digit percentage on a constant currency basis,” it said.

The FT said that Temasek, the Singapore-based sovereign wealth fund with an 18 per cent holding in Singapore, has been urging a clearer succession plan.