Bulletin: Rising Rates To Buoy Standard Chartered Profit

HONG KONG (S&P Global Ratings) Feb. 17, 2022--Rising rates and cost discipline will likely lift the Standard Chartered group's profit in the next two years. We also believe that a multiyear effort to strengthen risk management will help the group navigate strains arising from a resurgence of COVID-19 in some of its key markets, particularly Hong Kong. We have witnessed good profit recovery in 2021 for Standard Chartered PLC (SC PLC; BBB+/Stable/A-2) and its subsidiaries; Standard Chartered Bank (SCB; A+/Stable/A-1), and Standard Chartered Bank (Hong Kong) Ltd. (A+/Stable/A-1). A recovery in demand for loans and trade is lifting the group. Strength in wealth management also helps, as do lower credit costs in the key Asian markets of Hong Kong, China,

...February 17, 2022 HONG KONG (S&P Global Ratings) Feb. 17, 2022--Rising rates and cost discipline will likely lift the Standard Chartered group's profit in the next two years. We also believe that a multiyear effort to strengthen risk management will help the group navigate strains arising from a resurgence of COVID-19 in some of its key markets, particularly Hong Kong. We have witnessed good profit recovery in 2021 for Standard Chartered PLC (SC PLC; ###+/Stable/A-2) and its subsidiaries; Standard Chartered Bank (SCB; A+/Stable/A-1), and Standard Chartered Bank (Hong Kong) Ltd. (A+/Stable/A-1). A recovery in demand for loans and trade is lifting the group. Strength in wealth management also helps, as do lower credit costs in the key Asian markets of Hong Kong, China, Korea, Taiwan, and Singapore. The group's loan loss rate dropped to 7 basis points (bp) in 2021 from 66bp in 2020, partly helped by a release of provisions. Stage-three loans as a percentage of gross loans and advances decreased...

Bulletin