Standard Chartered May Take Commodities Provision: Credit Suisse

Standard Chartered Plc may need as much as $4.4 billion of additional capital to cover losses on its commodities book this year amid a slump in global prices, Credit Suisse Group AG said.

The bank faces an increase in risk-weighted assets of $24 billion “as the riskiness of the commodities portfolio is re-assessed,” Credit Suisse analysts led by Carla Antunes-Silva, with an underperform recommendation on shares, wrote in a note. The $4.4 billion would include $2.6 billion in pretax provisioning charges under an adverse scenario, they said.