Standard Chartered PLC; (Holding Co.); Standard Chartered Bank (Lead Bank)

That said, the Standard Chartered group's multiyear efforts to strengthen risk management should contain pressure on credit costs. We expect incremental provisions by the group for its China CRE loans to remain manageable. The group has been actively managing its property portfolio by lowering exposure and building additional provisions. The stable outlook on Standard Chartered PLC (SC PLC, the holding company of the Standard Chartered group) mainly reflects our view that the group will maintain its adequate risk management in the coming two years. We expect Standard Chartered group to maintain asset quality and credit losses that are broadly comparable to its global systemically important bank (G-SIB) peers'. The group has made steady progress in cleaning up its balance sheet

...Standard Chartered group's profitability is likely to remain broadly stable over the next two years. We expect monetary policy tightening in the group's key markets to near its end in 2024, and interest rate tailwinds to start easing. We forecast Standard Chartered group's net interest margin (NIM) will remain stable over the next year, and modestly dip by about 5 basis points (bps) in 2025. In our view, a gradual improvement in cost efficiency and credit costs in the range of 30bps-35bps of gross customer loans should help provide a balance. We expect Standard Chartered group's return on average assets (ROAA) to improve to about 0.50% over the next two years, compared...

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