Standard Chartered's credit impairments surge 62pc, sees unusual pressure

Standard Chartered (2888) said its third-quarter statutory credit impairment expenses surged 62 percent to US$195 million (HK$1.52 billion) from one quarter ago, citing the uncommon pressure on the commercial property in Hong Kong. 

This figure also represents a 10 percent year-on-year increase.

This increase was primarily attributed to additional provisions taken due to heightened risks within its commercial real estate portfolio. 

The group set aside an extra US$60 million specifically for exposures linked to the Hong Kong commercial real estate sector, citing increased pressures on client liquidity, interest payment capacity, and overall repayment ability.

A further US$25 million was added to its general provisions for this sector.

Additionally, the bank maintained US$49 million in general provisions related to China's commercial real estate market, down by US$9 million, mainly due to repayments.

Standard Chartered said it continues to cautiously monitor its exposure to high-risk sectors and specific jurisdictions, given the unusual pressures caused by the current macroeconomic challenges.