DAH MOW: HSBC's Middle East business contributes 5% of the group's pre-tax profit, and remains optimistic for the full year performance guidance.

Morgan Stanley released a research report stating that at the 22nd European Financial Conference, they invited HSBC Holdings Group CFO Guo Peiyin for a discussion. HSBC reiterated its long-term commitment to the Middle East market, where it has been operating for over 130 years and continues to view the region as a long-term growth market. Morgan Stanley set a target price of 1409 pence for HSBC shares, with a rating of "in line with the market." HSBC's main business exposure in the Middle East comes from two parts - HSBC Middle East Bank in Dubai, which contributes about $1 billion in pre-tax profit to the group; and Saudi British Bank, which contributes about $700 million. Together, they account for about 5% of the group's pre-tax profit, and loans in the region account for about 2% of the group's total loans. Despite increasing geopolitical risks, management remains optimistic about the full-year performance guidance and points out that any potential impact will depend on the duration of the conflicts.