Major Bank Ratings | Morgan Stanley: HSBC's Middle East business contributes 5% of the group's pre-tax profit, remains optimistic about full-year performance guidance

格隆汇 March 19｜Morgan Stanley released a research report stating that at the bank's 22nd European Financials Conference, Pam Kaur, Group CFO of HSBC Holdings, was invited for a discussion. HSBC reiterated its long-term commitment to the Middle East market, where it has been operating for over 130 years and continues to view the region as a long-term growth market. HSBC's main business exposure in the Middle East comes from two parts: first, HSBC Middle East Bank, mainly operating in Dubai, which contributes about $1 billion in pre-tax profit to the group; second, Saudi Awwal Bank, which contributes about $700 million. Together, these two account for approximately 5% of the group's pre-tax profit, and loans in the region account for about 2% of the group's total loans. Despite rising geopolitical risks, management remains optimistic about the full-year performance guidance and noted that any potential impact will depend on the duration of the conflict.