Smartkarma AI, Smartkarma

αSK

Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
  <li>
<a href="https://smartkarma.com/entities/standard-chartered-plc">Standard Chartered</a> is strategically focused on high-growth emerging markets in Asia, Africa, and the Middle East, leveraging its extensive network to facilitate cross-border trade and investment.</li>
  <li>The bank is undergoing a digital transformation to enhance customer experience and operational efficiency, with a goal of generating 50% of its income from digital initiatives by 2025.</li>
  <li>A strong financial performance in recent periods, driven by growth in wealth management and financial markets, has led to increased shareholder returns through buybacks and dividends.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
Standard Chartered is strategically focused on high-growth emerging markets in Asia, Africa, and the Middle East, leveraging its extensive network to facilitate cross-border trade and investment.
  The bank is undergoing a digital transformation to enhance customer experience and operational efficiency, with a goal of generating 50% of its income from digital initiatives by 2025.
  A strong financial performance in recent periods, driven by growth in wealth management and financial markets, has led to increased shareholder returns through buybacks and dividends.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Standard Chartered (STAN LN) - Sep 2025

Financial sector veteran, KT Capital Group

Fern Wang

Financial sector veteran

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

<ul>
<li>StandChart may need to take further impairment hit on China Bohai Bank</li>
<li>VIU model is used to justify the higher carrying value compared to fair value of the holdings.  There is zero headroom between the VIU model and the carrying amount.</li>
<li>We looked at VIU model assumptions for HSBC and StandChart. A declining NIM is likely put further pressure on the VIU model output for StandChart.  </li>
</ul>


StandChart may need to take further impairment hit on China Bohai Bank
VIU model is used to justify the higher carrying value compared to fair value of the holdings.  There is zero headroom between the VIU model and the carrying amount.
We looked at VIU model assumptions for HSBC and StandChart. A declining NIM is likely put further pressure on the VIU model output for StandChart.  


StandChart Is Likely to Have More China Bohai Impairment

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

<ul>
<li>Our focus is not on the decimation of earnings at <a href="https://www.smartkarma.com/entities/standard-chartered-plc" target="_blank" data-smartkarma-citation="entities:193:1" rel="noopener">Standard Chartered (STAN LN)</a> but rather the granular detail of stage 2 and stage 3 loans</li>
<li>There is tremendous growth in stage 2 loans in the quarter, which means the bank enters the quarter with a far higher pool that can migrate to stage 3</li>
<li>Stage 3 remains markedly higher provisions, and the bank's rise in credit costs is still fairly low, it can rise another 50% before hitting average rates </li>
</ul>


Our focus is not on the decimation of earnings at Standard Chartered (STAN LN) but rather the granular detail of stage 2 and stage 3 loans
There is tremendous growth in stage 2 loans in the quarter, which means the bank enters the quarter with a far higher pool that can migrate to stage 3
Stage 3 remains markedly higher provisions, and the bank's rise in credit costs is still fairly low, it can rise another 50% before hitting average rates 


STAN - Stage 2 Loans Surge | Expect Migration to Stage 3 Loans | Credit Costs Can Move 50% Higher

Thematic (Sector/Industry)

<ul>
<li>HKMA data shows the loss loan ratio in HK is up 7.5x from FY19 to 2Q25. These are the worst of the worst bad loans </li>
<li>Substandard loan ratio in HK is up 4.7x over the same period, and this bucket can gradually migrate to worse buckets, requiring more credit costs</li>
<li>Overdue loan ratio and rescheduled loan ratio in HK is up 5.4x over this period, and these are not technically NPLs</li>
</ul>


HKMA data shows the loss loan ratio in HK is up 7.5x from FY19 to 2Q25. These are the worst of the worst bad loans 
Substandard loan ratio in HK is up 4.7x over the same period, and this bucket can gradually migrate to worse buckets, requiring more credit costs
Overdue loan ratio and rescheduled loan ratio in HK is up 5.4x over this period, and these are not technically NPLs


HSBC - Loss Loans up 7.5x from FY19 to 2Q25 in HKMA Industry Data. Hang Seng Bank Buyout, Now?

<ul>
<li>There is strong and accelerating growth visible in HFD for US banks, even in the very core bucket of C&amp;I loans</li>
<li>Most recent full month shows 10.1% growth YoY for C&amp;I but Other Loans are up 27.3% Yoy in the same month, which is partly C&amp;I</li>
<li>Deposit distribution is improving, toward CASA, US banks can see better NIM, and net interest income, while economy appears from weekly bank data</li>
</ul>


There is strong and accelerating growth visible in HFD for US banks, even in the very core bucket of C&amp;I loans
Most recent full month shows 10.1% growth YoY for C&amp;I but Other Loans are up 27.3% Yoy in the same month, which is partly C&amp;I
Deposit distribution is improving, toward CASA, US banks can see better NIM, and net interest income, while economy appears from weekly bank data


US Banks - C&I Loans +10.1% YoY in Apr From -2.9% in Jan, Strong Read-Through, Banks & Economy

United Kingdom

Standard Chartered PLC is an international banking group operating principally in Asia, Africa, and the Middle East. The Company offers its products and services in the personal, consumer, corporate, institutional and treasury areas.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Standard Chartered (STAN LN)

Primer: Standard Chartered (STAN LN) - Sep 2025

Standard Chartered is strategically focused on high-growth emerging markets in Asia, Africa, and the Middle East, leveraging its extensive...

αSK

StandChart Is Likely to Have More China Bohai Impairment

StandChart is likely to take more impairment hit on China Bohai with continue NIM decline of the latter. We reviewed both of HSBC and StandChart's...

Fern Wang

STAN - Stage 2 Loans Surge | Expect Migration to Stage 3 Loans | Credit Costs Can Move 50% Higher

STAN's traditional credit costs are surging and remain well below long term averages. Rising stage 2 loans are the real concern, with migration...

Daniel Tabbush

HSBC - Loss Loans up 7.5x from FY19 to 2Q25 in HKMA Industry Data. Hang Seng Bank Buyout, Now?

HSBC is increasing its investment in HSB as loss loan ratio is HK is rising by 7.5x from FY19 to 2Q25, and high growth in other buckets, makes...

Daniel Tabbush

US Banks - C&I Loans +10.1% YoY in Apr From -2.9% in Jan, Strong Read-Through, Banks & Economy

HFD for US banks, shows very strong acceleration in C&I loans, and also other loans, which will also include C&I. Data suggests good economic...

Daniel Tabbush

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)