Lenders HSBC, Westpac Earnings Outlook Dampened by Iran War Risks

Asia Pacific’s main lenders will offer diverging paths navigating the fallout of the Iran war, with HSBC Holdings Plc and Westpac Banking Corp. more exposed than Singaporean peers.

HSBC’s exposure to the Middle East is about 4% of revenue and pretax. The longer-term geopolitical risk, which could hit both free income and financing demand, is less clear. Still, steady Hong Kong loan growth could buoy the lender amid such risks, Bloomberg Intelligence said.