Standard Chartered Plc slumped to the lowest in three months in Hong Kong trading after the lender said full-year operating profit at its consumer-banking unit will drop at least 10 percent, hurt by its Korean business.
Standard Chartered Plc, the U.K. lender that makes about three-quarters of its earnings in Asia, may end 11 years of record profits as a loss at the Korean unit undermines revenue at the consumer-banking division.
DBS Group Holdings Ltd., Southeast Asia’s largest lender, agreed to sell its remaining stake in Bank of the Philippine Islands for S$850 million ($681 million) to focus on key markets including Singapore and Hong Kong.
Standard Chartered Plc Chief Executive Officer Peter Sands said using a leverage ratio as the primary way of assessing banks’ solvency is flawed and will create a financial system more vulnerable to crisis.
Standard Chartered Plc, which generates more than three quarters of operating profit in Asia, will tap rising demand for wealth management products in Southeast Asia to bolster growth, Chief Executive Officer Peter Sands said.