China's losses cause Standard Chartered's earnings to decline by 12%.

• The temporary halt in trade occurred after shares of the Asia-focused bank dropped by 17% in early deals in London.
• In the third quarter, Standard Chartered, based in the U.K., recorded a pre-tax profit of $633 million, a 54% decrease from the previous year.
• As the economy recovers, we will remain committed, and this should benefit both us and others, according to Andy Halford, CFO of Standard Chartered, who shared this with CNBC.

The bank's big bet on China hit a stumbling block, leading to significant losses in the country, causing shares to slide on Thursday.

The stock of the Asia-focused bank dropped 17% in early trades in London, causing a temporary halt in trading. The stock later closed 12% lower in London.

The bank's pre-tax profit for the third quarter was $633 million, a 54% decrease from the previous year, due to the bank's reduction of the value of its investment in China Bohai Bank by $697 million.

The credit impairment charge of Standard Chartered increased by $62 million to $294 million, with a significant portion of it being attributed to the China commercial real estate sector, at $186 million.

Despite the news about China, Standard Bank's Chief Financial Officer Andy Halford stated on Thursday that the bank's overall performance is strong, as reported on CNBC's "Squawk Box Europe."

GDP in China is expected to rebound around 5% within the next two to three years, despite the commercial real estate sector being problematic, according to Halford.

According to Halford, the recovery from Covid may be slower in our country compared to others, but it's understandable given the large population that needs to be mobilized after such a significant event.

"Halford stated that most countries would be thrilled to experience such growth, and therefore, they are willing to endure this period. As the economy strengthens, this should benefit everyone."

Despite China's third-quarter growth exceeding expectations, its economic recovery since the end of the Covid-19 pandemic has been broadly disappointing.

'A blessing and a curse'

Richard Hunter, Interactive Investor's head of markets, stated that Standard Chartered's China issues are a concern, but the bank has enough capital to handle the challenges.

The economic recovery of Standard is being heavily impacted by China's faltering economic performance, which remains both a blessing and a curse for the company, as stated by him.

Hunter stated that although the impairment provisions have negatively impacted earnings, the performance is "less harrowing" on an underlying basis when excluding these provisions.

Standard, once a favorite in the UK banking sector, experienced a decline and is now showing signs of recovery, according to a note issued Thursday.

"Despite a sharp decline in Asian shares overnight, which was preceded by a 29% increase in the previous year, the UK company's shares had risen by 5.1%, in stark contrast to the struggles faced by most of its UK competitors."