Key facts
- Standard Chartered's Stage 2 gross customer loans increased by $2.6 billion in Q2 2026.
- Stage 2 gross customer loans reached $13.8 billion in Q2 2026.
- The increase represents a 23% quarter-on-quarter rise.
- The rise was due to Middle East-related management overlays.
- Management overlays were prompted by the Iran war.
- Increased provisioning for potential credit losses in the region is a result.
Standard Chartered's Stage 2 gross customer loans saw a significant increase of $2.6 billion in the second quarter of 2026, bringing the total to $13.8 billion. This 23% quarter-on-quarter rise is primarily attributed to management overlays implemented due to heightened risks in the Middle East. These overlays were specifically prompted by the ongoing Iran war, leading the bank to increase its provisioning for potential credit losses in the region. The bank's exposure to the Middle East has necessitated a more cautious approach to its loan portfolio management.