Emerging markets pay off for Standard Chartered

As Standard Chartered updates the market on Q3 performance Graham Spooner, investment research analyst from The Share Centre, explains what it means for investors.

"Tough market conditions have seen a slowdown in revenues for Standard Chartered however this does not come as a surprise. Despite the difficulties, the bank is on track to meet its double-digit revenue growth target for the year, assisted by tight controls on expenses. Sustained growth in Hong Kong and Singapore drove pre-tax profits for the period.

"The company's exposure to emerging markets including Taiwan, Korea, China, Pakistan, India and Thailand means it has fared well during the Euro-zone crisis compared to others in the sector. Investors will be pleased to hear the bank has no direct holding of debt from the troubled European countries making its exposure to the region insignificant to its performance.

"Standard Chartered is one to consider for investors looking for an emerging market play. Any weakness in the share price should be attractive for longer term investors, however as the volatility continues we wouldn't suggest chasing it higher. We recommend investors to drip feed into the stock, building a holding over time."