LONDON, March 13, 2026, 16:25 GMT
Standard Chartered shares struggled again Friday. Reuters market data pegged the stock’s monthly slide at roughly 13%, deepening as turmoil in the Middle East rattled bank stocks and crude prices stuck above $100 a barrel. European banks lagged the most among sectors, shedding 1.9%, with Standard Chartered and HSBC both weighing on the index.
Here’s the upshot: J.P. Morgan points to Standard Chartered and HSBC as the two big European banks with the largest exposure in the Middle East. The firm figures the region makes up roughly 8% of StanChart’s revenue, and a heftier 12% of its profit before tax. Barclays and BNP Paribas? Both see less than 1% of their revenue and profit coming from the Middle East.
Concerns have gone beyond strategy. Standard Chartered instructed its Dubai employees to work from home as unrest spilled into Gulf cities, with a series of attacks prompting companies to reassess both security and business continuity measures.
The bank’s push to make the Asia-Middle East corridor its growth driver isn’t new; it’s been years in the making. A Reuters analysis found StanChart’s UAE arm now contributes 5.7% to group income, up from 3.7% five years ago. Deal flow is picking up, too—China-Middle East business volumes jumped 18% last year, according to investor relations chief Manus Costello. The network can still shift gears if needed, the bank says. But Morningstar’s Kathy Chan flagged “additional risks related to the Groups’ trade finance and credit costs.” Trade finance, in this context, covers the short-term loans and guarantees banks use to grease the wheels of cross-border deals. Reuters
Friday brought another round of tightening nerves. Bank of America now expects the Bank of England to cut rates in June, not earlier, after energy price swings sent inflation jitters through the market. That move puts BofA in step with Goldman Sachs, Standard Chartered, and Morgan Stanley, who have all shifted their cut forecasts to the second quarter or beyond.
StanChart isn’t done with its buybacks yet. According to a Friday filing, the bank picked up 900,000 shares on March 12, paying a volume-weighted average of 1,609.3648 pence. That brings total programme spending to roughly $191.5 million as of the previous London close.
Standard Chartered’s move to ramp up capital returns is a fresh development. In full-year numbers out Feb. 24, the bank reported 2025 operating income up 6%, with underlying profit before tax rising 18% to $7.9 billion. The board hiked the full-year dividend by 65% and kicked off a $1.5 billion buyback on the spot. Chief executive Bill Winters called it a strong opening to 2026.
The shares’ direction now looks tied more to geopolitics than buybacks. Berenberg’s Jonathan Stubbs flagged that if the Strait of Hormuz is back open by late March, the damage should stay contained. His warning: “a prolonged closure and persistently high energy prices pose the real risk.” Reuters
