LONDON, June 26 (Reuters) - Standard Chartered’ s total commodity-related exposure around China’s Qingdao port is about $250 million, Chief Executive Peter Sands said on Thursday.
“That is across multiple clients, multiple locations, multiple types of facilities, not all of which will be affected,” Sands said on a conference call.
Qingdao port, the world’s seventh busiest, has been at the centre of an investigation looking at whether a private metals trading firm issued multiple warehouse receipts so that the same metal cargo could be used multiple times to obtain financing.
“We have taken a preliminary view of the potential impact in our guidance for the outlook in the first half, and we don’t see it as material at this stage,” Sands said.
A spokesman said the bank was reviewing its exposure to commodity financing, but that it remained committed to the business.
“We are not pulling back from providing commodity (metals) financing nor are we pulling back from China, which is a key market for the bank,” the spokesman said.
Reporting by Steve Slater, writing by Susan Thomas; editing by Jason Neely