London, March 12, 2026, 18:59 GMT
Standard Chartered’s stock price fell 3.76% to 1,598 pence at the London close on Thursday, underperforming the broader market after JPMorgan said the bank and HSBC were the major European lenders most exposed to the Middle East conflict. The FTSE 100 ended down 0.4%. 1
The move matters because StanChart has spent years pitching the Asia-Middle East corridor as a growth engine, not a side bet. Manus Costello, the bank’s global head of investor relations, told Reuters last month that business volumes between China and the Middle East rose 18% over the past year, leaving the shares more sensitive to any hit to Gulf trade or business confidence. 2
JPMorgan on Thursday estimated the Middle East accounts for about 8% of Standard Chartered’s revenue and 12% of profit before tax, even though disclosed UAE loans are roughly $9 billion, or close to 2% of the bank’s total loan book. Since Feb. 28, when the U.S. and Israel struck Iran, StanChart shares are down about 11.4%, versus a 9.5% fall in the STOXX Europe banks index, according to Reuters calculations. 3
The pressure spread quickly. HSBC lost more than 6% on Thursday, the UK banks index dropped 4.8%, and Standard Chartered evacuated its Dubai office while HSBC closed Qatar branches and Citigroup temporarily shut most UAE branches. “Our network has proven to be adaptable and resilient,” a Standard Chartered spokesperson said. 4
JPMorgan said the risk looks more like earnings pressure than a wave of credit losses because much of the regional book is concentrated in high-rated corporates. It put Barclays, BNP Paribas and Deutsche Bank in a lighter-exposure group, with less than 1% of revenue and profit tied to the region, while warning that higher energy costs could still squeeze StanChart clients in agriculture, manufacturing, construction and transport. 3
Analysts do not see a straight line down. Morningstar’s Kathy Chan warned of “additional risks” to trade finance and credit costs, but Hargreaves Lansdown’s Matt Britzman said the turmoil may also lift demand for “foreign exchange and cash management” services. 2
A routine filing did little to steady the stock. Standard Chartered said it bought back 882,000 shares on March 11 at an average 1,664.2266 pence, lifting spending under the repurchase plan to about $171.8 million. The buyback is part of the $1.5 billion programme unveiled with February’s full-year results, when the bank reported a 16% rise in profit before tax to $6.96 billion and raised its dividend 65%. 5
The next hard marker is April 30, when first-quarter results are due. A shorter conflict or steadier oil prices could make this week’s selloff look too harsh; a longer shock would keep the focus on cross-border trade, funding costs and loan demand, even if JPMorgan says 73% of StanChart’s UAE exposure sits with government-related entities and banks. 6
