Bulletin: Stronger Net Interest Margins To Lift Standard Chartered's Profitability

SINGAPORE (S&P Global Ratings) Feb. 16, 2023--Standard Chartered group's profitability is likely to improve further over the next two years. Stronger net interest margins (NIM), a recovery in wealth management, and cost discipline are likely to provide that support. The group's multiyear efforts to strengthen risk management and solid economic growth prospects in major markets, particularly greater China, will also help limit significant downside risk to overall credit quality. The 2022 financial performance 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), remained resilient. Although operating conditions remained tough, mainly characterized by a slowdown in economic growth in major markets, strains in the China property sector,

...February 16, 2023 SINGAPORE (S&P Global Ratings) Feb. 16, 2023--Standard Chartered group's profitability is likely to improve further over the next two years. Stronger net interest margins (NIM), a recovery in wealth management, and cost discipline are likely to provide that support. The group's multiyear efforts to strengthen risk management and solid economic growth prospects in major markets, particularly greater China, will also help limit significant downside risk to overall credit quality. The 2022 financial performance 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), remained resilient. Although operating conditions remained tough, mainly characterized by a slowdown in economic growth in major markets, strains in the China property sector, and sovereign downgrades, the group's return on tangible equity was about 8% in 2022 compared with 6.8% in 2021....

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