Standard Chartered is betting on the economies of the Middle East and Asia expecting a recession in Europe and the USA
2022.11.21 04:12
Standard Chartered is betting on the economies of the Middle East and Asia expecting a recession in Europe and the USA
Budrigannews.com – Standard Chartered (OTC:) executives say Asia and the Middle East will outperform other regions, even if higher inflation and higher borrowing costs risk putting the world’s major economies into recession next year. I expect that
The London-based lender has stepped up its transaction banking and financial markets businesses in bets that both regions will continue to experience economic growth while many Western countries face contraction, StanChart’s firm said. said Simon Cooper, CEO of , Commercial and Institutional Bank.
“I don’t see a recession as a major risk in this part of the world. In Asia and the Middle East, I feel the economy is doing well,” said Cooper, 55, who is widely viewed by the investment community. , is considered the successor to CEO Bill Winters.
With operations in 59 countries, mostly in Asia, the Middle East and Africa, StanChart sees its European and US clients move more business to low-cost Asia.
“In the wake of COVID, we have seen a shift towards Southeast Asia and neighboring countries in terms of manufacturing. It’s accelerating,” he said.
He said the market is looking at a timeline for China to end its covid-zero policy.
StanChart, which accounts for the majority of its revenue in Asia, reports a 40% rise in pre-tax profit in the third quarter and raises its earnings growth forecast for this year as interest rate hikes boost core lending business. I was.
Cooper also highlighted India as a major beneficiary of supply chain changes and strong economic growth. “India is probably at its sweetest spot for quite some time. People are starting to see it as a real opportunity,” he said.
Cooper, who previously spent more than 20 years at HSBC, heads the division that contributed about three-quarters of StanChart’s pre-tax earnings in the September-to-September period.
StanChart’s focus on growing markets and their ability to better withstand recessions has led several global banks to signal plans to cut jobs as they brace for the recession.
StanChart’s financial markets business revenue increased by a record 17% in the latest quarter. “From macro trading to foreign exchange markets to global credit markets, we have a much more balanced financial markets business,” Cooper said.
Cooper, who is also CEO of StanChart’s European and American businesses, said, “We’ve seen double-digit growth in net client revenue this year.
