LONDON, March 13, 2026, 16:25 GMT
Standard Chartered shares stayed under pressure on Friday, with Reuters market data showing the stock’s monthly decline widening to about 13% as the Middle East conflict battered bank stocks and crude held above $100 a barrel. European banks were the worst-performing sector, down 1.9%, and Standard Chartered and HSBC were among the main drags. 1
Why this matters now is pretty direct. J.P. Morgan said Standard Chartered and HSBC are the major European banks most exposed to the Middle East, estimating the region accounts for about 8% of StanChart’s revenue and 12% of before-tax profit, while lenders such as Barclays and BNP Paribas have less than 1% of revenue and profit tied to the area. 2
The worry has also turned operational. Standard Chartered told staff in Dubai to work remotely as the conflict spread across Gulf cities, after repeated attacks in the region pushed firms to revisit safety plans and business continuity. 3
That matters because the bank has spent years building the Asia-Middle East corridor into a growth engine. A Reuters analysis showed StanChart’s UAE business had grown to 5.7% of group income from 3.7% over five years, while investor relations head Manus Costello said business volumes between China and the Middle East rose 18% last year. The bank said its network remained adaptable, but Morningstar analyst Kathy Chan warned of “additional risks related to the Groups’ trade finance and credit costs.” Trade finance is the short-term lending and guarantees banks use to keep cross-border shipments moving. 4
The backdrop turned tougher again on Friday. BofA pushed its call for a first Bank of England rate cut to June as energy prices revived inflation fears, joining Goldman Sachs, Standard Chartered and Morgan Stanley in shifting easing expectations into the second quarter or later. 5
StanChart, for its part, is still buying back stock. A filing published on Friday showed the bank bought 900,000 shares on March 12 at a volume-weighted average 1,609.3648 pence, taking spending under the programme to about $191.5 million by the previous London close. 6
That capital-return push is recent. In its full-year results on Feb. 24, Standard Chartered said 2025 operating income rose 6%, underlying profit before tax climbed 18% to $7.9 billion, the full-year dividend was lifted 65%, and a new $1.5 billion buyback would start immediately. Chief executive Bill Winters said the bank had made a good start to 2026. 7
But the next move in the shares may depend less on buybacks than on shipping lanes and oil. Berenberg analyst Jonathan Stubbs said the fallout would be limited if the Strait of Hormuz reopened by the end of March; otherwise, “a prolonged closure and persistently high energy prices pose the real risk.” 8
