DUBAI, March 9 (Reuters) - HSBC on Monday expressed confidence in the Gulf Cooperation Council(GCC) members' economic prospects as the region and the wider Middle East brace for the economic shock
HSBC CEO says bank's confidence in Gulf unchanged amid Iran conflict
HSBC's Position and Strategy in the Gulf Amid Regional Tensions
DUBAI, March 9 (Reuters) - HSBC's CEO said on Monday the bank remained confident in the Gulf states' economic prospects, as the region and the wider Middle East brace for the economic shock from the U.S.-Israeli war with Iran.
HSBC's Confidence in the GCC
Georges Elhedery said HSBC's "conviction in the GCC's (Gulf Cooperation Council) fundamentals and its future is unchanged", in some of the first comments from an international bank boss on the growing crisis.
Expansion Strategy in the Gulf
Like many international lenders, HSBC has sought to expand across the Gulf, and has highlighted the region as key to its wider group strategy of capitalising on inter-regional global deal and capital flows to boost the bank's overall profitability.
Middle East Contribution to HSBC's Profit
HSBC does not disclose the Middle East contribution to its profit, but a Reuters calculation from company figures showed that its United Arab Emirates' and Saudi Arabian businesses, which account for the vast majority of its activity in the region, have together contributed 5% of overall group profits annually over the past five years.
Statements from HSBC Leadership
“HSBC remains steadfast in our confidence in the GCC and in the long-term strength, resilience and promise of the region," Elhedery said in a statement on Monday. "We continue to believe that the years ahead will bring renewed stability, growth, and prosperity."
Asia-Middle East Corridor and Future Growth
Elhedery told investors on a February 25 conference call that the "Asia-Middle East corridor is becoming a defining axis of global growth," adding that the UAE was among the markets key to the bank's strategy to grow wealth management fees.
Impact of Iran Conflict on the Gulf Region
Since the start of the war 10 days ago, Iranian drones and ballistic missiles have hit countries across the GCC, which comprises Bahrain, Kuwait, Saudi Arabia, Qatar, Oman and the United Arab Emirates, severely disrupting oil and gas exports that underpin regional revenue.
(Reporting by Federico Maccioni in Dubai and Lawrence White in LondonEditing by Tomasz Janowski and Susan Fenton)
