Standard Chartered Bank (Hong Kong) Ltd.

Core position within the Standard Chartered group Good franchise in Hong Kong Good risk management policies and procedures Good overall financial profile Maturing and competitive home market High level of exposure to property The ratings on Standard Chartered Bank (Hong Kong) Ltd. (SCBHK) reflect its status as a core subsidiary of Standard Chartered Bank (SCB; A/Stable/A-1), good franchise in Hong Kong, and satisfactory financial profile. These positive factors are offset by the bank's geographic concentration on its maturing and saturated home market, Hong Kong, which is characterized by keen competition and strong pressure on interest margins. The bank's exposure to property related lending in Hong Kong is high, although the vast majority of such exposure is in the form of

...The ratings on Standard Chartered Bank (Hong Kong) Ltd. (SCBHK) reflect its status as a core subsidiary of Standard Chartered Bank (SCB; A/Stable/A-1), good franchise in Hong Kong, and satisfactory financial profile. These positive factors are offset by the bank's geographic concentration on its maturing and saturated home market, Hong Kong, which is characterized by keen competition and strong pressure on interest margins. The bank's exposure to property related lending in Hong Kong is high, although the vast majority of such exposure is in the form of residential mortgage loans with low delinquency rates. Hong Kong remains the largest single market in terms of profit contribution for the SCB group, and has a key role to play in the group's expansion in Greater China. SCBHK is therefore an important determinant of overall group creditworthiness. SCBHK is strongly integrated into the group management structure and complies with group risk management policies. Incorporation is not expected...

Full Report