Standard Chartered expected to report higher third-quarter net profit

what happened

Standard Chartered is scheduled to publish third-quarter results on Wednesday. According to a Visible Alpha poll of analysts, net profit for the three months to September 30 is expected to rise 19% to about $1.23 billion, compared with $1.03 billion a year earlier. The Hong Kong-listed shares are up 9.1% year to date, helped by strong performance in the affluent client business and share buybacks.

Investors will watch profit growth in wealth and retail banking, which rose 76% to $1.01 billion in the second quarter. Risks also matter: the bank has significant operations in the UAE and several Asian countries that rely on Middle Eastern energy. In July it disclosed $234 million in credit charges tied to the Middle East conflict for the first half, and credit impairments reached $150 million in the second quarter, up from $119 million a year earlier.

why it matters

The report will serve as a read-through for Asian and Middle Eastern banking: profit growth alongside higher credit provisions would show how resilient the bank's clients are amid the energy shock and the Iran war.

market impact

Hong Kong and Asian banks: results and provisions set sentiment for the sector and HKD-linked assets

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