Why Standard Chartered is unhurt by increased competition

Thanks to "diversified exposure".

According to CLSA, increased competition has - as with peers - hit StanChart’s profitability in hong Kong over the past two decades. 

However, StanChart has also achieved solid growth in its market share in selected banking lines.

Here's more from CLSA:

Notably, StanChart overtook Hang Seng in mortgages in 2011 and in unsecured consumer credit in 2010. It now has close to the same share of deposits as Hang Seng, up from half of Hang Seng’s a decade ago.

StanChart’s uniquely diversified exposure to growth markets in Asia, the Middle East and Africa has driven its superior growth and return profile, with a commensurately premium price multiple. However, recent volatility in emerging-market currencies and equities, with a perceived shift in relative performance from “EM” to “DM” (developed markets) has borne down on StanChart’s multiples, to the point where we see StanChart at a sizeable disocunt, not a premium, to a fair value.