# StanChart sees Asia, Middle East as bright spots in weak global economy Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-21 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: StanChart CEO Bullish on Asia and Middle East Growth Meta Description: StanChart's CEO expects these regions to thrive despite global economic challenges, focusing on transaction banking and financial markets for success. URL: https://financedigest.com/stanchart-sees-asia-middle-east-as-bright-spots-in-weak-global-economyhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-21t081554z1lynxmpeiak072rtroptp4stanchart-results-1736814839004-compressed.jpg) By Anshuman Daga SINGAPORE (Reuters) – Standard Chartered expects Asia and the Middle East to outperform other regions even as spiralling inflation and a spike in borrowing costs risk tipping major global economies into a recession next year, a senior executive at the bank said. The London-headquartered lender has been beefing up its transaction banking and financial markets businesses, betting the two regions will still see economic growth while many Western countries face contraction, said Simon Cooper, StanChart’s CEO of corporate, commercial and institutional banking business. I don’t [see recession as a big risk](https://www.financedigest.com/wto-sees-subpar-2023-trade-growth-with-multiple-risks.html "WTO sees “subpar” 2023 trade growth with multiple risks") in this part of the world. In Asia and the Middle East, I see economies doing well,” said Cooper, 55, who is widely seen by the investment community as a potential successor to [CEO Bill Winters](https://www.financedigest.com/ceraweek-europe-gas-supplies-to-stay-tight-2-more-winters-equinor-ceo-says.html "CERAWEEK-Europe gas supplies to stay tight 2 more winters, Equinor CEO says"). StanChart, which operates in 59 countries with a focus on Asia, Middle East and Africa, is [seeing its European](https://www.financedigest.com/european-airlines-see-travel-withstanding-consumer-squeeze-for-now.html "European airlines see travel withstanding consumer squeeze for now") and U.S. clients [move more business](https://www.financedigest.com/gulf-bank-moves-paper-digital-records-help-alaris-kodak-alaris-business.html "Gulf Bank Moves from Paper to Digital Records with Help of Alaris, a Kodak Alaris business") to low-cost Asia. “In the aftermath of COVID, we’ve seen the shift to Southeast Asia and neighbouring countries from a manufacturing perspective. That’s continued and if anything, accelerated,” Singapore-based Cooper told Reuters in an interview. He said markets are looking to see the timeline for [China moving](https://www.financedigest.com/olympics-freestyle-skiing-gu-lands-big-air-gold-china-moves-to-top-of-medals-table.html "Olympics-Freestyle skiing-Gu lands Big Air gold, China moves to top of medals table") out of its zero-COVID policy. StanChart, which earns most of its revenue in Asia, reported a 40% rise in pretax profit in the third quarter and raised its income growth forecast for the [year as rising rates boost its mainstay lending business](https://www.financedigest.com/2021-the-year-of-the-global-workforce-for-british-small-businesses.html "2021: The Year of the Global Workforce for British small businesses "). Cooper also highlighted [India as a big beneficiary of supply chain shifts](https://www.financedigest.com/walmart-paid-most-of-1-billion-tax-for-phonepe-shifting-base-to-india.html "Walmart paid most of billion tax for PhonePe shifting base to India") and strong economic growth. “India is probably at the sweetest spot it has been in quite a while. People are starting to see it as a [real opportunity,”](https://www.financedigest.com/the-north-heads-south-to-mipim-en-masse-to-corner-new-real-estate-business-opportunities.html "The North heads South to MIPIM en masse to corner new real estate business opportunities") he said. Cooper, who previously spent more than two decades at HSBC, heads the division that contributed about three-fourths of [StanChart’s pretax profit](https://www.financedigest.com/stanchart-surprises-with-40-profit-jump-ups-income-goal-on-rising-rates.html "StanChart surprises with 40% profit jump, ups income goal on rising rates") in the nine months to September. StanChart’s [focus on growth markets and its ability to better withstand the economic downtown come at a time](https://www.financedigest.com/why-manufacturers-mustnt-lose-their-green-focus-in-troubled-times.html "WHY MANUFACTURERS MUSTN’T LOSE THEIR GREEN FOCUS IN TROUBLED TIMES") when some global banks have flagged plans to cut jobs as they hunker down for a recession and are impacted by their weak investment banking business. Income at StanChart’s financial markets business [surged 17% to a record](https://www.financedigest.com/londons-ftse-100-hits-fresh-record-high-as-telecoms-surge.html "London’s FTSE 100 hits fresh record high as telecoms surge") in the latest quarter. We’ve now got a much more balanced financial markets business than we had before, from macro trading to foreign exchange to [global credit](https://www.financedigest.com/credit-suisse-54-billion-lifeline-offers-limited-respite-to-global-banks.html "Credit Suisse billion lifeline offers limited respite to global banks") markets,” said Cooper. We’ve seen net client income grow double digits this year,” said Cooper, who is also the [CEO of StanChart’s](https://www.financedigest.com/stanchart-ceo-says-at1-bond-wipeout-has-profound-impact.html "StanChart CEO says AT1 bond wipeout has profound impact") Europe & Americas business. (Reporting by Anshuman Daga; Editing by Muralikumar Anantharaman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---