STANCHART: Very satisfactory performance in the first half of the year, interest rate cuts expected to drive demand in lending sector

STANCHART had a very satisfactory performance in the first half of the year, with the prospect of achieving the ROTE target for 2026 ahead of schedule. Interest rate cuts have various impacts on banks, although they may lower deposit rates, they can increase loan demand. The group is strengthening its hedging policies in the hope of minimizing the impact of interest rate cuts. Real estate exposure has been reduced by half, with sufficient provisions for non-performing loans. The group plans to return over $5 billion to shareholders within three years. Virtual bank Mox bank has performed well, and new products will be launched in the second half of the year. It is expected that the United States will cut interest rates twice, which will support loan demand