Standard Chartered's Stage 2 gross customer loans increased by $2.6 billion in Q2 2026, reaching $13.8 billion, due to Middle East-related management overlays prompted by the Iran war. This represents a 23% quarter-on-quarter rise.
The rise in Stage 2 loans at Standard Chartered indicates an increase in credit risk exposures, particularly influenced by geopolitical events in the Middle East. This suggests potential future challenges for the bank's loan portfolio and profitability.
Standard Chartered's Stage 2 gross customer loans saw a significant increase of $2.6 billion in the second quarter of 2026. This rise, bringing the total to $13.8 billion, is attributed to the bank's decision to transfer exposures affected by Middle East-related management overlays, specifically prompted by the Iran war. The increase represents a 23% quarter-on-quarter jump and marks the highest level for these loans since the beginning of 2022. In comparison, the bank's total gross customer loans experienced a more modest growth of 1.9%, or $5.8 billion, reaching $303 billion during the same period.