London, March 13, 2026, 13:13 GMT
- HSBC slipped roughly 1% by 1058 GMT Friday, adding to Thursday’s slide of over 5%. 1
- Shares changed hands ex-dividend in London on Thursday, reflecting a fourth interim payout of 45 cents per share, which hits accounts April 30. 2
- JPMorgan flags HSBC and Standard Chartered as the European banks facing the greatest exposure to the Middle East conflict. 3
HSBC shares dropped for a second straight day on Friday, falling about 1% by 1058 GMT as investors continued to shun lenders with heavy exposure to the Gulf. The stock had already shed over 5% on Thursday. Standard Chartered slipped as well. 1
HSBC is suddenly standing in for Gulf risk—at least in investors’ eyes—despite beating forecasts on annual profit just weeks back. Both a Reuters analysis and Thursday’s JPMorgan note flag HSBC and Standard Chartered as the European banks with the most exposure to the conflict. HSBC shares have slipped 14% since the Feb. 28 strikes on Iran. 4
Not every drop on Thursday was about new jitters. HSBC shares went ex-dividend in London on March 12, lining up a fourth interim payout of 45 cents a share, payable April 30—a move that usually knocks the stock down on the day. The dividend schedule is posted 2 .
Still, the strain hasn’t let up after the calendar turned. HSBC shut its Qatar locations, Standard Chartered cleared out its Dubai office and instructed employees to work remotely, and Citigroup announced it will keep most UAE branches closed until March 14, with lenders tightening safety measures. 5
That message doesn’t quite line up with HSBC’s own stance. Chief Executive Georges Elhedery insisted this week the bank’s confidence in Gulf region fundamentals hasn’t budged. Back on Feb. 25, he described the Asia-Middle East corridor as “a defining axis of global growth.” According to Reuters calculations, operations in the UAE and Saudi Arabia have each made up about 5% of group profits yearly for the past five years. 6
JPMorgan figures put HSBC’s Middle East exposure at roughly 4% of the bank’s revenue and pretax profit—make that nearly 9% once Egypt, Turkey, and Saudi Arabia enter the mix. Regional lending exposure? About $23 billion, or 2% of the 2025 loan book, by their count. Higher energy costs could put the squeeze on corporate borrowers in manufacturing, construction, and transport, JPMorgan noted. 3
Morningstar’s Kathy Chan flagged “additional risks” for trade finance—those crucial short-term loans and guarantees banks rely on to grease cross-border commerce—plus a potential uptick in credit costs. But there’s a flip side, Hargreaves Lansdown’s Matt Britzman noted: turmoil like this often sparks a rush for foreign-exchange and cash-management services, which could cushion some of the blow. 5
Macro risks loom larger here. Jonathan Stubbs at Berenberg points out that if the Strait of Hormuz reopens by end-March, economic fallout stays contained. If the closure drags on, oil moves past $100, and traders push back expectations for rate cuts, the damage amplifies. 1
The pullback breaks a solid streak. Back on Feb. 25, HSBC bumped up its return on tangible equity goal to at least 17% through 2028, following an annual profit beat. By then, Reuters noted, shares had jumped 50% in 2025 and tacked on another 10% since the start of the year, right before this month’s slide. 4
