Middle East Situation | JPMorgan: HSBC and Standard Chartered are the European banks with the greatest exposure to Middle East risk

SighingCashier · 2026-03-12T14:38:09+00:00

Middle East conflicts show no signs of abating. A JPMorgan report indicates that HSBC and Standard Chartered have the largest risk exposures in the Middle East, contributing 4% and 12% to pretax profits respectively. Other European banks have smaller risk exposures, with approximately 13% of loans related to rising energy costs. JPMorgan believes Hong Kong's private banking business will become a global financial growth center over the next 5 to 10 years.

SighingCashier

2026-03-12 14:38:09

Abstract generation in progress

There are no signs of the Middle East conflict calming down. JPMorgan analysts reported that HSBC and Standard Chartered are the European banks most exposed to Middle Eastern risks, contributing 4% and 12% respectively to their pre-tax profits from the region.

JPMorgan noted that other European banks have limited exposure to Middle Eastern risks. Overall, loans to companies potentially most affected by rising energy costs account for about 13% of total loans in the European banking sector. These energy-linked industries include agriculture, forestry and fisheries, manufacturing, construction, and transportation and warehousing.

Hong Kong Private Banking is a Long-Term Relative Winner

In private banking, JPMorgan believes that wealth flows will increase. Regionally, Hong Kong is a relative long-term winner, with the most excitement around Hong Kong becoming a global financial growth hub in the next 5 to 10 years.

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