Banking giant, Standard Chartered Plc has said that it is confident over its capital strength even if it is facing a difficult year ahead.

The banking giant said that it is increasing its dividend even as it recorded a fall in its annual profits. The bank recorded its first fall in a decade and this weakened its outlook for the first half of the year. The bank is now facing slowing growth and rising bad loans and it has to record sustained growth even as earnings slows in Asian market.

The bank said that it is facing a difficult year and had cut bonus pool by 15 percent to $1.2 billion. Chief Executive Peter Sands' bonus fell 21 percent to the level of $2.5 million. It is also planning to introduce allowance for hundreds of senior staff this year. The allowance will increase the fixed pay of the staff but reduce their bonuses in order to comply with EU bonus capping rules.

Standard's chief executive, Peter Sands has said that Richard Meddings, the finance director and Steve Bertamini, the head of consumer banking will leave the bank in June. The announcement shocked analysts and investors, who were already concerned over recent profit warning from the bank.