The bank, based in London, said pretax profit declined to $1.53 billion from $1.83 billion in the third quarter of 2013.
Standard Chartered said impairments for loans and other credit risks nearly doubled, to $539 million, from $289 million in the period a year earlier.
“We remain watchful in India, in China and of commodity exposures more broadly, where we have continued to tighten our underwriting criteria and reduce our exposures,” the bank said in a news release.
Standard Chartered said the market environment “remains challenging,” adding that it expected underlying profit in the second half of this year to be below that in the second half of 2013, in part due to “a higher U.K. bank levy, regulatory and restructuring costs.”
The bank said it was looking to make an additional $400 million in cost reductions in 2015.
“We are taking action on multiple fronts, both to respond to near-term challenges and to deliver against our refreshed strategy,” the bank said.
Shares of Standard Chartered declined 9.6 percent, to £9.90, or $15.94, in midday trading in London on Tuesday.
In August, Standard Chartered agreed to pay a $300 million fine as part of a settlement with the New York State Department of Financial Services after its computer systems failed to flag wire transfers from areas of the world considered vulnerable to money laundering. This came after a $667 million penalty imposed by state and federal authorities in 2012.
The bank’s operating income, which excludes the effect of the settlement and other costs, increased slightly, to $4.51 billion, from $4.47 billion in the third quarter of 2013, while expenses rose 4 percent, to $2.52 billion.
In its corporate and institutional client segment, its largest business line, operating income rose about 1.5 percent, to $2.56 billion. Operating income fell slightly, to $899 million, in its financial markets business. In its retail business, operating income rose 4.9 percent, to $1.5 billion.