Hong Kong hurricanes — meteorological or political — can leave residents walking against the wind. Standard Chartered has beaten expectations with third-quarter results. Chief executive Bill Winters, heeding complaints over his pension from investors, plans to take a pay cut. But storms of protest on Hong Kong streets may hamper the Asia-focused bank.
StanChart gets a third of its income from Hong Kong, whose economy is expected to weaken this year. Fewer wealthy mainlanders are visiting the city this year. That means lower sales of savings and insurance products. Creditor petitions for bankruptcy have risen by almost a fifth.
Earnings are likely to take a hit in the coming quarters. Credit impairment charges have already more than doubled. Restructuring costs swelled over 16 times to $123m. StanChart’s common equity tier one capital ratio slipped a percentage point from the same period last year to 13.5 per cent.