Standard Chartered PLC said the coronavirus epidemic would slow its profit growth this year, adding to the headwinds the Asia-focused bank faces from social unrest in Hong Kong and the aftermath of the trade war.
The spread of the virus “will make it more difficult for us to hit our financial targets,” chief executive Bill Winters told reporters as the bank reported earnings on Thursday. In a statement, the bank said it expects “suppressed income” and additional credit losses because of the outbreak.
The warning comes after rival HSBC Holdings PLC, which also relies heavily on business from Asia, said earlier this month that it was reducing expectations for economic growth this year as a result of the virus.
US firms brace for flat earnings
US companies will generate no earnings growth in 2020 as the coronavirus spreads beyond China, deepening risks to global growth, Goldman Sachs said on Thursday.
The bank’s analysts cut their baseline earnings per share estimate for S&P 500 index companies to $165 from $174 in 2020, implying that profits will likely remain unchanged from a year ago. Analysts had forecast a 7.7 per cent rise in earnings, according to Refinitiv data.
Goldman Sachs said the latest forecast reflects a severe decline in Chinese economic activity in the first quarter, lower demand for US exporters, supply chain disruptions and a slowdown in domestic economic activity.
Alert at Geneva auto show
Car makers are reducing staff attending Geneva’s car show next week as Switzerland confirmed three new cases of the coronavirus, including one in Geneva. Toyota on Thursday said it is paring back its attendance to include “business critical” staff.
