1st Quarter Results

Standard Chartered PLC
02 May 2024
 

 

 

 

 

 

Standard Chartered PLC

Q1'24 Results

02 May 2024

 

Registered in England under company No. 966425

Registered Office: 1 Basinghall Avenue, London, EC2V 5DD, UK


Table of contents

Performance highlights

1

Statement of results

3

Group Chief Financial Officer's review

4

Supplementary financial information

13

Underlying versus reported results reconciliations

24

Risk review

28

Capital review

33

Financial statements

37

Other supplementary information

42

 

Unless another currency is specified, the word 'dollar' or symbol '$' in this document means US dollar and the word 'cent' or symbol 'c' means one-hundredth of one US dollar.

Unless the context requires, within this document, 'China' refers to the People's Republic of China and, for the purposes of this document only, excludes Hong Kong Special Administrative Region (Hong Kong), Macau Special Administrative Region (Macau) and Taiwan. 'Korea' or 'South Korea' refers to the Republic of Korea.

Within the tables in this report, blank spaces indicate that the number is not disclosed, dashes indicate that the number is zero and nm stands for not meaningful.

Standard Chartered PLC is incorporated in England and Wales with limited liability. Standard Chartered PLC is headquartered in London. The Group's head office provides guidance on governance and regulatory standards. Standard Chartered PLC stock codes are: HKSE 02888 and LSE STAN.LN.

 

 

 

Standard Chartered PLC - Results for the first quarter ended 31 March 2024

All figures are presented on an underlying basis and comparisons are made to 2023 on a reported currency basis, unless otherwise stated. A reconciliation of restructuring and other items excluded from underlying results is set out on pages 24-27.

Bill Winters, Group Chief Executive, said: 

"We delivered a strong set of results in the first quarter of 2024, with double-digit growth in income and positive operational leverage. Business performance was strong and broad-based across our segments, products and markets in what continues to be an uncertain environment. We have taken action to create a simpler and more efficient organisation with changes to our Group management structure and we are advancing our Fit for Growth programme. We remain confident in the delivery of our financial targets and are maintaining our full year 2024 guidance."

Selected information on Q1'24 financial performance with comparisons to Q1'23 unless otherwise stated

•  Operating income up 17% to $5.2bn, up 20% at constant currency (ccy); up 14% at ccy excluding two notable items of $234m reported in Treasury and Other products

Net interest income (NII) up 5% at ccy to $2.4bn with net interest margin of 1.76%, up 6bps quarter-on-quarter (QoQ)

Non NII up 37% at ccy to $2.7bn, up 25%, excluding two notable items  

Markets up 17% at ccy from higher Macro Trading across rates, foreign exchange and commodities and Credit Trading

Wealth Solutions up 23% at ccy, with broad-based growth across products and supported by robust leading indicators in Affluent net new money and new to bank clients

Banking up 17% at ccy, from Lending & Financial Solutions driven by higher origination and distribution volumes

Two notable items of $234m from revaluation of FX positions in Egypt and hyperinflation in Ghana

•  Operating expenses up 6% at ccy to $2.8bn, up 2% QoQ at ccy

•  Income-to-cost jaws positive in the quarter

•  Credit impairment charge of $176m in Q1'24, primarily Wealth & Retail Banking (WRB) of $136m reflecting a charge in line with recent quarters; net nil charge for Corporate & Investment Banking (CIB) with China Commercial Real Estate (CRE) portfolio charge of $10m offset by other releases

Loan-loss rate (LLR) of 23bps in Q1'24

High risk assets of $8.5bn, down $2bn QoQ; $1bn from reversal of existing sovereign exposure from reverse repo to investment securities

China CRE portfolio: total expected credit loss provisions $1.2bn, stage 3 exposures of $1.5bn with cover ratio including collateral of 90% and a remaining management overlay of $129m

•  Underlying profit before tax of $2.1bn, up 27% at ccy; reported profit before tax of $1.9bn, up 8% at ccy

•  Tax charge of $0.5bn; underlying effective tax rate of 26%

•  Other items of $112m includes $100m provision in respect of the Korea equity linked securities portfolio

•  Balance sheet remains strong, liquid and well-diversified

Loans and advances to customers of $283bn, down $4bn or 1% since 31.12.23; up $4bn or 2% on an underlying basis; growth from CIB partly offset by mortgage headwinds

-    Customer deposits of $459bn, down $10bn or 2% since 31.12.23; down $6bn or 1% at ccy; growth in WRB offset by lower CIB CASA from month end client activity, substantially returned post quarter end

Liquidity coverage ratio of 146% (31.12.23: 145%)

•  Risk-weighted assets (RWA) of $252bn, up $8bn or 3% since 31.12.23

Credit risk RWA up $2bn includes increases from change in asset mix and model changes, partly offset by lower FX

Market risk RWA up $4bn; RWA deployed to help clients capture opportunities in Markets

$2bn from mechanically higher Operational risk RWA, due to an increase in average income as measured over a rolling three-year time horizon

•  Capital position remains robust

Common equity tier 1 (CET1) ratio of 13.6% (31.3.24) broadly stable post the full impact of the $1 billion share buyback announced in February 2024; underlying profit accretion offset by increased RWAs; around two-thirds of share buyback completed to date

•    Underlying earnings per share (EPS) increased 15.3 cents or 41% to 52.9 cents; Reported EPS increased 5.8 cents or 14% to 46.5 cents

Page 01

 

 

Standard Chartered PLC - Results for the first quarter ended 31 March 2024

•  Tangible net asset value per share decreased 3 cents to 1,390 cents since 31.12.23; profit accretion offset by reserve movements and full $1bn share buyback reduction from tangible equity, whilst reduction in the number of basic ordinary shares reflects buyback completion of 44% as of 31.3.24

•  Return on tangible equity (RoTE) of 15.2%, up 3%pts

Guidance

The start to the year has been strong and the momentum we see across our businesses gives us confidence in the delivery of our financial targets set out in February. We are maintaining our 2024 guidance:

•  Operating income to increase around the top of 5-7% range in 2024, excluding the two notable items in Q1'24

•  Net interest income for 2024 of $10bn to $10.25bn, at ccy

•  Positive income-to-cost jaws, excluding UK bank levy, at ccy in 2024

•  Low single-digit percentage growth in loans and advances to customers and RWA in 2024

•  Continue to expect LLR to normalise towards the historical through the cycle 30 to 35bps range

•  Continue to operate dynamically within the full 13-14% CET1 ratio target range

•  Continue to increase full-year dividend per share over time

•  RoTE increasing steadily from 10%, targeting 12% in 2026 and to progress thereafter

Page 02

 

 


Statement of results


Q1'24
$million

Q1'23
$million

Change1
%

Underlying performance




Operating income

5,152

4,396

17

Operating expenses (including UK bank levy)

(2,786)

(2,675)

(4)

Credit impairment

(176)

(26)

nm⁸

Other impairment

(60)

-

nm⁸

(Loss)/Profit from associates and joint ventures

(1)

11

nm⁸

Profit before taxation

2,129

1,706

25

Profit attributable to ordinary shareholders²

1,393

1,076

29

Return on ordinary shareholders' tangible equity (%)

15.2

11.9

330bps

Cost to income ratio (excluding bank levy) (%)

54.1

60.9

680bps

Reported performance7




Operating income

5,130

4,560

13

Operating expenses

(2,997)

(2,750)

(9)

Credit impairment

(165)

(20)

nm⁸

Other impairment

(60)

-

nm⁸

Profit from associates and joint ventures

6

18

nm⁸

Profit before taxation

1,914

1,808

6

Taxation

(519)

(464)

(12)

Profit for the period

1,395

1,344

4

Profit attributable to parent company shareholders

1,403

1,341

5

Profit attributable to ordinary shareholders2

1,223

1,163

5

Return on ordinary shareholders' tangible equity (%)

13.5

13.0

50bps

Cost to income ratio (including bank levy) (%)

58.4

60.3

190bps

Net interest margin (%) (adjusted)6

1.76

1.63

13bps

Balance sheet and capital




Total assets

812,525

820,678

(1)

Total equity

50,839

50,011

2

Average tangible equity attributable to ordinary shareholders²

36,510

36,269

1

Loans and advances to customers

283,403

300,627

(6)

Customer accounts

459,386

462,169

(1)

Risk weighted assets

252,116

250,893

-

Total capital

52,538

52,318

-

Total capital (%)

20.8

20.9

(10)bps

Common Equity Tier 1

34,279

34,402

-

Common Equity Tier 1 ratio (%)

13.6

13.7

(10)bps

Advances-to-deposits ratio (%)3

54.3

56.2

(2.0)

Liquidity coverage ratio (%)

146

161

(15)

Leverage ratio (%)

4.8

4.7

10bps

 

Information per ordinary share

Cents

Cents

Change1

Earnings per share - underlying4

52.9

37.6

15.3

                 - reported4

46.5

40.7

5.8

Net asset value per share

1,626

1,505

121

Tangible net asset value per share5

1,390

1,297

93

Number of ordinary shares at period end (millions)

2,610

2,833

(8)

1   Variance is better/(worse) other than assets, liabilities and risk-weighted assets. Change is percentage points difference between two points rather than percentage change for total capital ratio (%), common equity tier 1 ratio (%), net interest margin (%), advances-to-deposits ratio (%), liquidity coverage ratio (%), leverage ratio (%), cost-to-income ratio (%) and return on ordinary shareholders' tangible equity (%). Change is cents difference between two points rather than percentage change for earnings per share, net asset value per share and tangible net asset value per share

2   Profit attributable to ordinary shareholders is after the deduction of dividends payable to the holders of non-cumulative redeemable preference shares and Additional Tier 1 securities classified as equity

3   When calculating this ratio, total loans and advances to customers excludes reverse repurchase agreements and other similar secured lending, excludes approved balances held with central banks, confirmed as repayable at the point of stress and includes loans and advances to customers held at fair value through profit and loss. Total customer accounts include customer accounts held at fair value through profit or loss

4   Represents the underlying or reported earnings divided by the basic weighted average number of shares. Prior period refers to 3 months ended 31.03.23

5   Calculated on period end net asset value, tangible net asset value and number of shares

6   Net interest margin is calculated as adjusted net interest income divided by average interest-earning assets, annualised

7   Reported performance/results within this interim financial report means amounts reported under UK-adopted IAS and EU IFRS. In prior periods Reported performance/results were described as Statutory performance/results

8   Not meaningful

Page 03


Group Chief Financial Officer's review

The Group delivered a strong performance in the first quarter of 2024

Summary of financial performance


Q1'24
$million

Q1'23
$million

Change
%

Constant currency change¹
%

Q4'23
$million

Change
%

Constant currency change¹
%

Underlying net interest income3

2,419

2,341

3

5

2,392

1

1

Underlying non NII3

2,733

2,055

33

37

1,632

67

68

Underlying operating income

5,152

4,396

17

20

4,024

28

28

Other operating expenses

(2,786)

(2,675)

(4)

(6)

(2,754)

(1)

(2)

UK bank levy

-

-

nm4

nm4

(108)

100

100

Underlying operating expenses

(2,786)

(2,675)

(4)

(6)

(2,862)

3

2

Underlying operating profit before impairment and taxation

2,366

1,721

37

40

1,162

104

102

Credit impairment

(176)

(26)

nm4

nm4

(62)

(184)

(167)

Other impairment

(60)

-

nm4

nm4

(41)

(46)

(50)

Profit from associates and joint ventures

(1)

11

(109)

(109)

(3)

67

67

Underlying profit before taxation

2,129

1,706

25

27

1,056

102

100

Restructuring

(55)

48

nm4

nm4

(63)

13

3

Goodwill & other impairment

-

-

nm4

nm4

(153)

100

100

DVA

(48)

54

(189)

(189)

35

nm4

nm4

Other items

(112)

-

nm4

nm4

262

(143)

(143)

Reported profit before taxation

1,914

1,808

6

8

1,137

68

66

Taxation

(519)

(464)

(12)

(12)

(199)

(161)

(123)

Profit for the period

1,395

1,344

4

6

938

49

52

Net interest margin (%)2

1.76

1.63

13


1.70

6


Underlying return on tangible equity (%)2

15.2

11.9

330


9.4

580


Underlying earnings per share (cents)

52.9

37.6

41


30.4

74


1   Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2   Change is the basis points (bps) difference between the two periods rather than the percentage change

3   To be consistent with how we compute Net Interest Margin ('NIM'), and to align with the way we manage our business, we have changed our definition of Underlying net interest income ('NII') and Underlying non NII. The adjustments made to NIM, including interest expense relating to funding our trading book, will now be shown against Underlying non NII rather than Underlying NII. Prior periods have been restated. There is no impact on total income

4   Not meaningful

Reported financial performance summary


Q1'24
$million

Q1'23
$million

Change
%

Constant currency change¹
%

Q4'23
$million

Change
%

Constant currency change¹
%

Net interest income

1,572

2,006

(22)

(20)

1,860

(15)

(16)

Non NII

3,558

2,554

39

43

2,509

42

42

Reported operating income

5,130

4,560

13

15

4,369

17

17

Reported operating expenses

(2,997)

(2,750)

(9)

(12)

(3,013)

1

-

Reported operating profit before impairment and taxation

2,133

1,810

18

20

1,356

57

55

Credit impairment

(165)

(20)

nm³

nm³

(55)

nm³

(185)

Goodwill & other impairment

(60)

-

nm³

nm³

(197)

70

69

Profit from associates and joint ventures

6

18

(67)

(67)

33

(82)

(82)

Reported profit before taxation

1,914

1,808

6

8

1,137

68

66

Taxation

(519)

(464)

(12)

(12)

(199)

(161)

(123)

Profit/(loss) for the period

1,395

1,344

4

6

938

49

52

Reported return on tangible equity (%)2

13.5

13.0

50


10.0

350


Reported earnings per share (cents)

46.5

40.7

14


34.0

37


1      Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2      Change is the basis points (bps) difference between the two periods rather than the percentage change

3      Not meaningful

Page 04



 

Group Chief Financial Officer's review continued

The Group delivered a strong performance in the first quarter of 2024. The Group's underlying profit before tax of $2.1 billion was an increase of 27 per cent year-on-year at constant currency. Underlying operating income grew 20 per cent at constant currency to $5.2 billion and was up 14 per cent at constant currency excluding two notable items totalling $234 million relating to gains on revaluation of FX positions in Egypt and a hyperinflationary accounting adjustment in Ghana. Underlying net interest income was up 5 per cent at constant currency, underlying non NII increased 37 per cent or up 25 per cent at constant currency excluding the impact of the two notable items. The net interest margin increased 6 basis points to 176 basis points in the quarter, as the Group benefitted from the one month impact of the roll-off of short-term hedges and improved liability mix. Underlying expenses increased 6 per cent at constant currency driven higher by inflation and business growth initiatives. Income-to-cost jaws were positive in the quarter. Credit impairment charges of $176 million in the quarter were equivalent to an annualised loan-loss rate of 23 basis points and benefitted from a net nil charge in Corporate & Investment Banking (CIB).

The Group remains well capitalised and highly liquid with a diverse and stable deposit base. The liquidity coverage ratio of 146 per cent was 1 percentage point higher on the prior quarter, reflecting disciplined asset and liability management. The common equity tier 1 (CET1) ratio of 13.6 per cent remains robust and stable post the impact of the full $1 billion share buyback announced in February 2024 with profit accretion in the first quarter offset by growth in Risk-weighted assets (RWA)..

All commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2023 on a reported currency basis, unless otherwise stated.

•  Underlying operating income of $5.2 billion was up 17 per cent or 20 per cent at constant currency driven by strong business activity and the continued benefit of higher interest rates. Excluding the two notable items of $234 million relating to translation gains on revaluation of FX positions in Egypt and a hyperinflationary accounting adjustment in Ghana, income increased 14 per cent at constant currency

•  Underlying net interest income increased 3 per cent, or 5 per cent at constant currency. The net interest margin increased 13 basis points as the Group increased its pricing on assets and the yield on its Treasury portfolio more quickly than it repriced its liability base, reflecting strong pricing discipline and passthrough rate management as interest rates increased in key footprint currencies. The net interest margin also benefitted from a $97 million increase from the roll-off of the loss-making short-term hedges. The improvement in margin was in part offset by lower asset volumes, partly due to currency translation

•  Underlying non NII increased 33 per cent driven by strong performances in Wealth Solutions, Banking and Markets as well as the inclusion of two notable items under Treasury and Other income. Excluding the two notable items of $234 million, underlying non NII was up 25 per cent at constant currency. An accounting asymmetry resulting from Treasury management of FX positions also contributed to an increase in underlying non NII, with a partial offset from reduced underlying net interest income

•  Underlying operating expenses increased 4 per cent, or 6 per cent at constant currency. This growth reflected the impact of inflation and the Group's continued investment into business growth initiatives including Wealth & Retail Banking (WRB) relationship managers and CIB capabilities. The Group generated positive income-to-cost jaws of 13 per cent at constant currency

•  Credit impairment was a $176 million charge in the quarter with a $136 million charge in WRB and a $28 million charge in Ventures primarily from Mox. There was a net nil charge in CIB for the quarter as the charges including $10 million relating to the China commercial real estate sector were offset by releases in other parts of the portfolio. The loan-loss rate for the quarter annualises to 23 basis points

•  Other impairment charge of $60 million was related to the write-off of software assets and had no impact on our capital ratios

•  Profit from associates and joint ventures decreased $12 million to a $1 million loss as profits at China Bohai Bank (Bohai) reduced

•  Restructuring, DVA and Other items totalled $215 million. Other items include $100 million provision for participation in a compensation scheme recommended by the Korean Financial Supervisory Service in respect of the Korea equity linked securities (ELS) portfolio. Restructuring charges were $55 million while movements in Debit Valuation Adjustment (DVA) were a negative $48 million

•  Taxation was $519 million on a reported basis, with an underlying effective tax rate of 26.5 per cent compared to the prior year rate of 26.3 per cent

•  Underlying return on tangible equity (RoTE) increased by 330 basis points to 15.2 per cent due to higher profits. On a reported basis, RoTE increased 50 basis points to 13.5 per cent with underlying profits in part offset by a negative movement in DVA and the provision in relation to Korea ELS and Restructuring

Page 05

 



 

Group Chief Financial Officer's review continued

Operating income by product2


Q1'24
$million

Q1'232
$million

Change
%

Constant currency change¹
%

Q4'232
$million

Change
%

Constant currency change¹
%

Transaction Services

1,615

1,572

3

4

1,659

(3)

(3)

Payments and Liquidity

1,161

1,094

6

7

1,207

(4)

(4)

Securities & Prime Services

141

141

-

1

140

1

1

Trade & Working Capital

313

337

(7)

(2)

312

-

-

Banking

472

411

15

17

400

18

18

Lending & Financial Solutions

414

353

17

20

358

16

16

Capital Markets & Advisory

58

58

-

-

42

38

36

Markets

1,041

922

13

17

534

95

97

Macro Trading

884

786

12

16

463

91

93

Credit Trading

167

121

38

44

92

82

84

Valuation & Other Adj

(10)

15

(167)

(171)

(21)

52

47

Wealth Solutions

616

511

21

23

412

50

50

CCPL & Other Unsecured Lending

287

290

(1)

1

288

-

(1)

Deposits

908

803

13

14

933

(3)

(3)

Mortgages & Other Secured Lending

103

161

(36)

(34)

57

81

84

Treasury

43

(233)

118

118

(235)

118

119

Other

67

(41)

nm3

nm3

(24)

nm3

nm3

Total underlying operating income

5,152

4,396

17

20

4,024

28

28

1   Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2   Products are now presented to reflect the RNS on Presentation of Financial Information issued on 2 April 2024. Prior periods have been restated and there is no change in total income

3   Not meaningful

The operating income by product commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2023 on a constant currency basis, unless otherwise stated.

Transaction Services income increased 4 per cent. Payments and Liquidity was up by 7 per cent driven by higher volumes and margin growth from disciplined passthrough rate management in a continued high interest rate environment. This was partly offset by lower Trade & Working Capital income which decreased 2 per cent reflecting margin compression and lower volumes.

Banking income increased 17 per cent as Lending & Financial Solutions grew 20 per cent from higher origination and distribution volumes and increased deal completion leading to improved distribution fee income. Capital Market & Advisory income was stable.

Markets income was up 17 per cent with broad based growth across all products driven primarily by episodic income from market volatility in select geographies whilst Commodities benefitted from higher metals and energy prices.

Wealth Solutions income was up 23 per cent off the back of strong leading indicators with continued momentum in Affluent new to bank client onboarding and net new money which doubled year-on-year to $11 billion. This led to broad-based growth across all products.

CCPL & Other Unsecured Lending income was up 1 per cent with volume growth in Personal Loans in part offset by lower Credit Card fee income.

Deposits income increased 14 per cent from higher volumes in term deposits, and active passthrough rate management in a higher rate environment.

Mortgages & Other Secured Lending income was down 34 per cent on the back of lower mortgage volumes particularly in Korea and Hong Kong, and margin compression which in part reflect the impact of the Best Lending Rate cap in Hong Kong restricting the ability to reprice mortgages despite an increase in funding costs from higher interest rates.

Treasury income increased by $276 million benefitting from $158 million translation gains on revaluation of United States Dollar (USD) FX positions in Egypt. The gains arose as the Egypt branch capital is held in USD but the functional currency is the Egyptian Pound (EGP) which has devalued over time and in accordance with IAS 21 'The Effects of Changes in Foreign Exchange Rates' has resulted in a gain on revaluation of monetary assets and liabilities. The income is offset by a loss in the currency translation reserve resulting in no impact on the Group's capital ratios. Future income adjustments could arise if the EGP exchange rate with the USD continues to move. Treasury also benefitted from the roll-off of short-term hedges which contributed a $97 million increase in income year-on-year. The loss-making short-term hedges rolled off in part at the end of February 2023 and the remaining tranche matured at the end of February 2024.

Page 06



 

Group Chief Financial Officer's review continued

Other products of $67 million include $76 million from Ghana being deemed a hyperinflationary economy for accounting purposes. The results of Ghana operations have been prepared in accordance with IAS 29 'Financial Reporting in Hyperinflationary Economies' as if the economy had always been hyperinflationary. The results of those operations for the period ended 31 March 2024 are stated in terms of current purchasing power using the consumer price index (CPI), with the corresponding adjustment presented in the profit and loss account. In accordance with IAS 21, the results have been translated and presented in USD at the prevailing rate of exchange on 31 March 2024.

Profit before tax by client segment


Q1'24
$million

Q1'23
$million

Change
%

Constant currency change¹
%

Q4'23
$million

Change
%

Constant currency change¹
%

Corporate & Investment Banking2

1,639

1,485

10

13

1,266

29

28

Wealth & Retail Banking2

729

677

8

8

445

64

61

Ventures

(112)

(103)

(9)

(9)

(133)

16

16

Central & other items

(127)

(353)

64

64

(522)

76

76

Underlying profit before taxation

2,129

1,706

25

27

1,056

102

100

1      Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2      CCIB and CPBB segments have been renamed to CIB and WRB respectively, to reflect the RNS on Presentation of Financial Information issued on 2 April 2024

The client segment commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2023 on a constant currency basis, unless otherwise stated.

Corporate & Investment Banking (CIB) profit before taxation increased 13 per cent. Income grew 10 per cent with strong double-digit growth in Markets, from higher episodic income and growth in flow income, and Banking, which benefitted from higher origination and distribution volumes. Expenses were 3 per cent higher with a net nil impairment charge.

Wealth & Retail Banking (WRB) profit before taxation increased 8 per cent, with income up 10 per cent benefitting from the impact of active passthrough management in Deposits and continued strong momentum in Wealth Solutions, partly offset by lower Mortgage income. Expenses increased 4 per cent while credit impairment charge was $74 million higher following a non-repeat of prior year overlay releases.

Ventures loss increased by $9 million to $112 million reflecting the Group's continued investment in transformational digital initiatives. Income increased by $15 million but this was partly offset by an increase in expenses of $11 million. The impairment charge increased $18 million to $28 million reflecting increased bankruptcy related write-offs in Mox and the build-up of expected credit loss provisions as the credit portfolios grew.

Central & other items recorded a loss of $127 million just over one third of the prior period loss. Treasury income increased by $280 million mostly from translation gains on revaluation of FX positions in Egypt of $158 million and benefited from the roll-off of the short-term hedges of $97 million. Other products increased by $93 million of which $76 million is related to a hyperinflationary accounting adjustment in Ghana. Expenses increased by $78 million from project costs and other items that are temporarily held centrally before recharging to client segments, whilst there was a credit impairment charge of $12 million from sovereign-related exposures. Associates income reduced by $17 million reflecting lower profits at Bohai.

Adjusted net interest income and margin


Q1'24
$million

Q1'23
$million

Change¹
%

Q4'23
$million

Change¹
%

Adjusted net interest income2

2,429

2,340

4

2,397

1

Average interest-earning assets

553,710

582,557

(5)

558,183

(1)

Average interest-bearing liabilities

537,161

538,969

-

537,916

-







Gross yield (%)3

5.18

4.37

81

4.98

20

Rate paid (%)3

3.52

2.97

55

3.40

12

Net yield (%)3

1.66

1.40

26

1.58

8

Net interest margin (%)3,4

1.76

1.63

13

1.70

6

1      Variance is better/(worse) other than assets and liabilities which is increase/(decrease)

2      Adjusted net interest income is reported net interest income less funding costs for the trading book, financial guarantee fees and others on interest-earning assets

3      Change is the basis points (bps) difference between the two periods rather than the percentage change

4  Adjusted net interest income divided by average interest-earning assets, annualised

5  Not meaningful

Page 07

 



 

Group Chief Financial Officer's review continued

Adjusted net interest income increased 4 per cent due to 8 per cent increase in the net interest margin which averaged 176 basis points in the quarter, increasing 13 basis points year-on-year and 6 basis points compared to the prior quarter with a benefit from the one month roll-off of the loss-making short-term hedges and improved liabilities mix partly offset by an accounting asymmetry resulting from Treasury management of FX positions.

•  Average interest-earning assets decreased 1 per cent in the quarter primarily from lower Treasury assets. Gross yields increased 20 basis points compared to the prior quarter, benefitting from continued higher interest rates, one month benefit from the roll-off of the short-term hedge and improved mix in part from the roll-off of Treasury assets and Mortgages in WRB

•  Average interest-bearing liabilities were broadly stable on the prior quarter as growth in customer accounts was offset by lower Treasury balances. The rate paid on liabilities increased 12 basis points compared with the average in the prior quarter, reflecting the impact of interest rate movements which were partly offset by an improved liability mix

Credit risk summary

Income Statement (Underlying view)

 


Q1'24
$million

Q1'23
$million

Change1
%

Q4'23
$million

Change1
%

Total credit impairment charge

176

26

nm3

62

184

Of which stage 1 and 22

61

6

nm3

4

nm3

Of which stage 32

115

20

nm3

58

98

1      Variance is increase/(decrease) comparing current reporting period to prior reporting periods

2      Refer to Credit Impairment charge table in Risk review section for reconciliation from underlying to reported credit impairment

3      Not meaningful

Balance sheet


31.03.24
$million

31.12.23
$million

Change1
%

31.03.23
$million

Change1
%

Gross loans and advances to customers2

288,643

292,145

(1)

305,975

(6)

Of which stage 1

272,133

273,692

(1)

286,335

(5)

Of which stage 2

9,520

11,225

(15)

12,216

(22)

Of which stage 3

6,990

7,228

(3)

7,424

(6)







Expected credit loss provisions

(5,240)

(5,170)

1

(5,348)

(2)

Of which stage 1

(478)

(430)

11

(507)

(6)

Of which stage 2

(359)

(420)

(15)

(446)

(20)

Of which stage 3

(4,403)

(4,320)

2

(4,395)

-







Net loans and advances to customers

283,403

286,975

(1)

300,627

(6)

Of which stage 1

271,655

273,262

(1)

285,828

(5)

Of which stage 2

9,161

10,805

(15)

11,770

(22)

Of which stage 3

2,587

2,908

(11)

3,029

(15)







Cover ratio of stage 3 before/after collateral (%)3

63 / 81

60 / 76

3 / 5

59 / 79

4 / 2

Credit grade 12 accounts ($million)

1,009

2,155

(53)

1,642

(39)

Early alerts ($million)

4,933

5,512

(11)

5,351

(8)

Investment grade corporate exposures (%)3

72

73

(1)

75

(3)

1   Variance is increase/(decrease) comparing current reporting period to prior reporting periods

2   Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $11,290 million at 31 March 2024, $13,996 million at 31 December 2023 and $14,398 million at 31 March 2023

3   Change is the percentage points difference between the two points rather than the percentage change

 

Page 08


Group Chief Financial Officer's review continued

Asset quality remained resilient in the first quarter, with an improvement in a number of underlying credit metrics.

The Group continues to actively manage the credit portfolio whilst remaining alert to a volatile and challenging external environment including increased geopolitical tensions which has led to idiosyncratic stress in a select number of geographies and industry sectors.

Credit impairment was a $176 million charge in the quarter, up $150 million year-on-year and up $114 million compared to the prior quarter representing an annualised loan-loss rate of 23 basis points. The increase primarily reflects a lower level of impairment releases. There was a $136 million charge in WRB reflecting a level of charge broadly in line with recent quarters. There was a $28 million charge in Ventures primarily from Mox albeit delinquency and flow rates have improved as a result of adjusted credit criteria. In CIB, there was a net nil charge in the quarter which included a charge of $10 million relating to the China commercial real estate sector, net of a $12 million decrease in the management overlay which now totals $129 million. The Group has provided $1.2 billion in total in relation to the China commercial real estate sector. There was a net charge of $12 million from increases in sovereign related exposures. Excluding the China commercial real estate portfolio and sovereign-related exposures, there was also a net release relating to historical provisions of Corporate exposures.

Gross stage 3 loans and advances to customers of $7 billion were 6 per cent lower, as repayments, client upgrades, reduction in exposures and write-offs more than offset new inflows. Credit-impaired loans represent 2.4 per cent of gross loans and advances, broadly flat on the prior quarter.

The stage 3 cover ratio of 63 per cent increased by 3 percentage points compared to 31 December 2023, while the cover ratio post collateral at 81 per cent increased by 5 percentage points due to an increase in stage 3 provisions and a reduction in gross stage 3 balances.

Credit grade 12 balances decreased $1.1 billion since 31 December 2023 to $1.0 billion mostly from the expected reversal of an existing sovereign related exposure from reverse repurchase agreements to investment securities. Early alert accounts of $4.9 billion decreased by $0.6 billion due to net upgrades relating to a select number of clients. The Group is continuing to carefully monitor its exposures in vulnerable sectors and select geographies, given the unusual stresses caused by the currently difficult macro-economic environment.

The proportion of investment grade corporate exposures has decreased by 1 percentage point since 31 December 2023 to 72 per cent.

Restructuring, goodwill impairment and other items


Q1'24

Q1'23

Q4'23

Restructuring
$million

Goodwill and other impairment
$million

DVA
$million

Other
items
$million

Restructuring
$million

Goodwill and other impairment
$million

DVA
$million

Other
items
$million

Restructuring
$million

Goodwill and other impairment1
$million

DVA
$million

Other
items
$million

Operating income

38

-

(48)

(12)

110

-

54

-

48

-

35

262

Operating expenses

(111)

-

-

(100)

(75)

-

-

-

(151)

-

-

-

Credit impairment

11

-

-

-

6

-

-

-

7

-

-

-

Other impairment

-

-

-

-

-

-

-

-

(3)

(153)

-

-

Profit from associates and joint ventures

7

-

-

-

7

-

-

-

36

-

-

-

Profit/(loss) before taxation

(55)

-

(48)

(112)

48

-

54

-

(63)

(153)

35

262

1      Goodwill and other impairment include $153 million impairment charge relating to the Group's investment in its associate China Bohai Bank (Bohai).

The Group's reported performance is adjusted for profits or losses of a capital nature, amounts consequent to investment transactions driven by strategic intent, other infrequent and/or exceptional transactions that are significant or material in the context of the Group's normal business earnings for the period and items which management and investors would ordinarily identify separately when assessing underlying performance period-by period.

Restructuring charge of $55 million reflects the impact of actions to transform the organisation to improve productivity, primarily technology related costs and additional redundancy charges with a small single-digit amount related to the Fit for Growth programme and partly offset by gains on the remaining Principal Finance portfolio.

Movements in DVA were negative $48 million driven by the tightening of Group's asset swap spreads on derivative liability exposures. The size of the portfolio subject to DVA did not change materially in the quarter.

 

Page 09

 



 

Group Chief Financial Officer's review continued

Other items loss of $112 million includes a $100 million provision for participation in a compensation scheme in line with recommendations of the Financial Supervisory Service (FSS) in respect of the Korea ELS portfolio. Standard Chartered Bank Korea (SCBK) sold ELS to customers, the redemption values of which are determined by the performance of various stock indices, with a notional value of approximately $900 million. Due to the performance of the Hang Seng China Enterprise Index (HSCEI), some ELS have matured at a loss and it is anticipated additional customers may redeem ELS at a loss. The provision reflects those ELS portfolio losses for which SCBK is expected to compensate customers based on the level of the HSCEI as of 31 March 2024. The value of anticipated losses is subject to fluctuation as ELS mature on various dates through March 2025.

Balance sheet and liquidity

31.03.24
$million

Assets






Loans and advances to banks

39,698

44,977

(12)

38,216

4

Loans and advances to customers

283,403

286,975

(1)

300,627

(6)

Other assets

489,424

490,892

-

481,835

2

Total assets

812,525

822,844

(1)

820,678

(1)

Liabilities






Deposits by banks

29,691

28,030

6

26,889

10

Customer accounts

459,386

469,418

(2)

462,169

(1)

Other liabilities

272,609

275,043

(1)

281,609

(3)

Total liabilities

761,686

772,491

(1)

770,667

(1)

Equity

50,839

50,353

1

50,011

2

Total equity and liabilities

812,525

822,844

(1)

820,678

(1)







Advances-to-deposits ratio (%)²

54.3%

53.3%


56.2%


Liquidity coverage ratio (%)

146%

145%


161%


1      Variance is increase/(decrease)comparing current reporting period to prior reporting periods

2      The Group now excludes $21,258 million held with central banks (31.12.23: $20,710 million, 31.03.23: $24,173 million) that has been confirmed as repayable at the point of stress. Advances exclude reverse repurchase agreement and other similar secured lending of $11,290 million (31.12.23: $13,996 million) and include loans and advances to customers held at fair value through profit or loss of $7,950 million (31.12.23: $7,212 million). Deposits include customer accounts held at fair value through profit or loss of $17,595 million (31.12.23: $17,248 million)

The Group's balance sheet remains strong, liquid and well diversified.

•  Loans and advances to customers decreased by $4 billion or 1 per cent from 31 December 2023 to $283 billion and up $4 billion on an underlying basis with growth in CIB offset by an expected decline in Mortgages in WRB. The underlying increase excludes the impact of a $4 billion reduction from Treasury and securities based loans held to collect and $4 billion reduction from currency translation

•  Customer accounts of $459 billion decreased by $10 billion or 2 per cent from 31 December 2023. Excluding a $4 billion reduction from currency translation, customer accounts reduced by $6 billion, or 1 per cent, with lower balances in CIB CASA from month-end client activity, substantially returned post quarter end, partly offset by an increase in term deposits in WRB

•  Other assets were broadly flat on the prior quarter with increased financial assets held at fair value through profit or loss reflecting growth in the Trading book offset by a decrease in cash and balances held at central banks and lower derivative balances. Other liabilities decreased 1 per cent from a decrease in derivative liability balances

The advances-to-deposits ratio increased to 54.3 per cent from 53.3 per cent as at 31 December 2023. The point-in-time liquidity coverage ratio increased 1 percentage point in the quarter to 146 per cent and remains well above the minimum regulatory requirement.

Page 10

 



 

Group Chief Financial Officer's review continued

Risk-weighted assets


31.03.24
$million

31.12.23
$million

Change¹
%

31.03.23
$million

Change¹
%

By risk type






Credit risk

193,009

191,423

1

200,632

(4)

Operational risk

29,805

27,861

7

27,861

7

Market risk

29,302

24,867

18

22,400

31

Total RWAs

252,116

244,151

3

250,893

0

1      Variance is increase/(decrease) comparing current reporting period to prior reporting periods

Total risk-weighted assets of $252.1 billion increased $8 billion or 3 per cent from 31 December 2023.

•  Credit risk RWA increased by $1.6 billion in the first quarter to $193 billion. There was a $2.1 billion increase from asset mix reflecting a reduction in lower risk-weight Treasury assets and mortgages in WRB offset by growth in CIB assets. There was also an $1.3 billion increase from model and methodology changes, partly offset by a $2.2 billion reduction from currency translation

•  Operational risk RWA is mechanically higher by $1.9 billion due to an increase in average income as measured over a rolling three-year time horizon, with higher 2023 income replacing lower 2020 income

•  Market risk RWA increased $4.4 billion to $29.3 billion as RWA was deployed to help clients capture opportunities in Markets

Capital base and ratios


31.03.24
$million

31.12.23
$million

Change¹
%

31.03.23
$million

Change¹
%

CET1 capital

34,279

34,314

-

34,402

-

Additional Tier 1 capital (AT1)

6,486

5,492

18

5,492

18

Tier 1 capital

40,765

39,806

2

39,894

2

Tier 2 capital

11,773

11,935

(1)

12,424

(5)

Total capital

52,538

51,741

2

52,318

-

CET1 capital ratio(%)²

13.6

14.1

(0.5)

13.7

(0.1)

Total capital ratio(%)²

20.8

21.2

(0.4)

20.9

(0.1)

Leverage ratio (%)²

4.8

4.7

0.1

4.7

0.1

1      Variance is increase/(decrease) comparing current reporting period to prior reporting periods

2      Change is percentage points difference between two points rather than percentage change

The Group's CET1 ratio of 13.6 per cent was broadly stable post the full impact of the $1 billion share buyback announced in February 2024, underlying profit accretion was offset by increased RWAs. The CET1 ratio remains 3.1 percentage points above the Group's latest regulatory minimum of 10.5 per cent.

The 58 basis points of CET1 capital accretion from profits was offset by 57 basis points impact from an increase in RWA. A further 11 basis points uplift was the result of other comprehensive income from fair value gains and regulatory capital adjustments whilst an FX impact decreased the ratio by 7 basis points.

The Group is part way through the $1 billion share buyback programme which it announced on 23 February 2024, and by 31 March 2024 had spent $437 million purchasing 52 million ordinary shares, reducing the share count by approximately 2 per cent. Even though the share buyback was still ongoing on 31 March 2024, the entire $1 billion is deducted from CET1 in the period.

The Group is accruing a provisional interim 2024 ordinary share dividend over the first half of 2024, which is calculated formulaically at one third of the ordinary dividend paid in 2023 or 9 cents a share. Half of this amount was accrued in the first quarter and combined with payments due to AT1 and preference shareholders reduced the CET1 ratio by 10 basis points.

The Group's leverage ratio of 4.8 per cent is 7 basis points higher than as at 31 December 2023. This is primarily driven by increased Tier 1 capital following a $1 billion issuance of AT1 instruments in the first quarter. This was in part offset by increased leverage exposures as a reduction in benefits from regulatory adjustments more than offset a reduction in balance sheet assets. The Group's leverage ratio remains significantly above its minimum requirement of 3.7 per cent.

Page 11

 



 

Group Chief Financial Officer's review continued

Outlook

The start to the year has been strong and the momentum we see across our businesses gives us confidence in the delivery of our financial targets set out in February. We are maintaining our 2024 guidance:

•  Operating income to increase around the top of 5-7 per cent range in 2024, excluding the two notable items in Q1'24

•  Net interest income for 2024 of $10 billion to $10.25 billion, at constant currency

•  Positive income-to-cost jaws, excluding UK bank levy, at constant currency in 2024

•  Low single-digit percentage growth in loans and advances to customers and RWA in 2024

•  Continue to expect loan-loss ratio to normalise towards the historical through the cycle 30 to 35 basis points range

•  Continue to operate dynamically within the full 13-14 per cent CET1 ratio target range

•  Continue to increase full-year dividend per share over time

•  RoTE increasing steadily from 10 per cent, targeting 12 per cent in 2026 and to progress thereafter

 

 

 

Diego De Giorgi

Group Chief Financial Officer

 

02 May 2024

 

 

Page 12


Supplementary financial information

Underlying performance by client segment


Q1'24

Corporate & Investment Banking
$million

Wealth &
Retail Banking
$million

Ventures
$million

Central &
other items
$million

Total
$million

Operating income

3,115

1,917

32

88

5,152

External

2,545

888

32

1,687

5,152

Inter-segment

570

1,029

-

(1,599)

-

Operating expenses

(1,423)

(1,047)

(113)

(203)

(2,786)

Operating profit/(loss) before impairment losses and taxation

1,692

870

(81)

(115)

2,366

Credit impairment

-

(136)

(28)

(12)

(176)

Other impairment

(53)

(5)

-

(2)

(60)

Profit from associates and joint ventures

-

-

(3)

2

(1)

Underlying profit/(loss) before taxation

1,639

729

(112)

(127)

2,129

Restructuring

(11)

(19)

-

(25)

(55)

DVA

(48)

-

-

-

(48)

Other Items

-

(100)

-

(12)

(112)

Reported profit/(loss) before taxation

1,580

610

(112)

(164)

1,914

Total assets

415,090

124,456

4,916

268,063

812,525

Of which: loans and advances to customers1

190,083

122,089

1,024

25,725

338,921

loans and advances to customers

134,578

122,078

1,024

25,723

283,403

loans held at fair value through profit or loss

55,505

11

-

2

55,518

Total liabilities

450,072

201,870

3,967

105,777

761,686

Of which: customer accounts1

310,079

197,121

3,694

10,610

521,504

Risk-weighted assets

150,600

52,706

2,084

46,726

252,116

Income return on risk-weighted assets (%)

8.5

14.7

7.2

0.7

8.3

Underlying return on tangible equity (%)

23.0

28.8

nm²

(16.7)

15.2

Cost to income ratio (excluding bank levy) (%)

45.7

54.6

nm²

nm²

54.1

 


Q1'23

Corporate & Investment Banking
$million

Wealth &
Retail Banking
$million

Ventures
$million

Central &
other items
$million

Total
$million

Operating income

2,892

1,772

17

(285)

4,396

External

2,313

1,126

17

940

4,396

Inter-segment

579

646

-

(1,225)

-

Operating expenses

(1,415)

(1,033)

(102)

(125)

(2,675)

Operating profit/(loss) before impairment losses and taxation

1,477

739

(85)

(410)

1,721

Credit impairment

8

(62)

(10)

38

(26)

Other impairment

-

-

-

-

-

Profit from associates and joint ventures

-

-

(8)

19

11

Underlying profit/(loss) before taxation

1,485

677

(103)

(353)

1,706

Restructuring

39

(2)

-

11

48

DVA

54

-

-

-

54

Reported profit/(loss) before taxation

1,578

675

(103)

(342)

1,808

Total assets

394,873

130,669

2,683

292,453

820,678

Of which: loans and advances to customers1

181,335

128,102

812

36,816

347,065

loans and advances to customers

134,927

128,079

812

36,809

300,627

loans held at fair value through profit or loss

46,408

23

-

7

46,438

Total liabilities

476,993

188,050

1,955

103,669

770,667

Of which: customer accounts1

335,996

182,856

1,767

5,792

526,411

Risk-weighted assets

148,550

50,621

1,627

50,095

250,893

Income return on risk-weighted assets (%)

8.0

14.1

5.5

(2.3)

7.1

Underlying return on tangible equity (%)

21.2

28.0

nm²

(25.8)

11.9

Cost to income ratio (excluding bank levy) (%)

48.9

58.3

nm²

nm²

60.9

1      Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

2      Not meaningful

Page 13

 



 

Supplementary financial information continued

Corporate & Investment Banking


Q1'24
$million

Q1'23
$million

Change2
%

Constant currency change1,2
%

Q4'23
$million

Change2
%

Constant currency change1,2
%

Operating income

3,115

2,892

8

10

2,581

21

21

Transaction Services³

1,603

1,561

3

4

1,647

(3)

(3)

Payments and Liquidity

1,161

1,094

6

7

1,207

(4)

(4)

Securities & Prime Services

141

141

-

1

140

1

1

Trade & Working Capital

301

326

(8)

(2)

300

-

-

Banking³

472

411

15

17

400

18

18

Lending & Financial Solutions

414

353

17

20

358

16

16

Capital Markets & Advisory

58

58

-

-

42

38

36

Markets³

1,041

922

13

17

534

95

97

Macro Trading

884

786

12

16

463

91

93

Credit Trading

167

121

38

44

92

82

84

Valuation & Other Adj

(10)

15

(167)

(171)

(21)

52

47

Other

(1)

(2)

50

50

-

nm7

nm7

Operating expenses

(1,423)

(1,415)

(1)

(3)

(1,422)

-

(1)

Operating profit before impairment losses and taxation

1,692

1,477

15

17

1,159

46

44

Credit impairment

-

8

(100)

nm7

105

(100)

(103)

Other impairment

(53)

-

nm7

nm7

2

nm7

nm7

Underlying profit before taxation

1,639

1,485

10

13

1,266

29

28

Restructuring

(11)

39

(128)

(131)

(52)

79

78

DVA

(48)

54

(189)

(189)

35

nm7

nm7

Other items

-

-

nm7

nm7

262

(100)

(100)

Reported profit before taxation

1,580

1,578

-

3

1,511

5

4

Total assets

415,090

394,873

5

7

403,058

3

4

Of which: loans and advances to customers4

190,083

181,335

5

7

189,395

-

2

Total liabilities

450,072

476,993

(6)

(5)

464,968

(3)

(3)

Of which: customer accounts4

310,079

335,996

(8)

(7)

328,211

(6)

(5)

Risk-weighted assets

150,600

148,550

1

nm7

141,979

6  

nm7

Income return on risk-weighted assets (%)5

8.5

8.0

50bps

nm7

7.3

120bps

nm7

Underlying return on tangible equity (%)5

23.0

21.2

180bps

nm7

18.5

450bps

nm7

Cost to income ratio (%)6

45.7

48.9

3.2

3.3

55.1

9.4

8.9

1   Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2   Variance is better/(worse), except for risk-weighted assets, assets and liabilities which is increase/(decrease)

3   Products are now presented to reflect the RNS on Presentation of Financial Information issued on 2 April 2024. Prior periods have been restated and there is no change in total income

4   Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

5   Change is the basis points (bps) difference between the two periods rather than the percentage change

6   Change is the percentage points difference between the two periods rather than the percentage change

7   Not meaningful

Page 14

 



 

Supplementary financial information continued

Performance highlights

•  Underlying profit before tax of $1,639 million was up 13 per cent at constant currency (ccy) mainly driven by higher income partly offset by higher expenses and other impairment

•  Underlying operating income of $3,115 million was up 10 per cent at ccy, driven by strong double-digit growth in Markets with broad based growth across all products driven primarily by episodic income from volatility in select markets, whilst Commodities benefitted from higher metals and energy prices. Banking also performed strongly with Lending & Financial Solutions up 20 per cent from higher origination and distribution volumes. Transaction Services income increased 4 per cent, within which, Payments and Liquidity was up 7 per cent driven by higher volumes and margin growth from disciplined passthrough rates management, in a continued higher interest rate environment. This was partly offset by lower Trade & Working Capital income which decreased 2 per cent reflecting margin compression and lower volumes

•  Underlying operating expenses increased 3 per cent at ccy largely due to inflation and business growth initiatives

•  Credit impairment was a net nil charge in the quarter, as the charge of $10 million relating to the China commercial real estate sector was offset by releases in other parts of the portfolio. Other impairment was primarily related to the write-off of software assets

•  Risk-weighted assets (RWA) of $151 billion was up $9 billion since 31 December 2023 mainly from increased market risk RWA deployed to help clients realise income opportunities within Markets and mechanically higher operational risk RWA, and corporate lending asset growth

•  RoTE increased 1.8 percentage points to 23.0 per cent from 21.2 per cent in Q1'23

Page 15

 



 

Supplementary financial information continued

Wealth & Retail Banking


Q1'24
$million

Q1'233
$million

Change2
%

Constant currency change1,2
%

Q4'233
$million

Change2
%

Constant currency change1,2
%

Operating income

1,917

1,772

8

10

1,701

13

13

Transaction Services3

12

11

9

9

12

-

-

Payments and Liquidity

-

-

nm7

nm7

-

nm7

nm7

Trade & Working Capital

12

11

9

9

12

-

-

Wealth Solutions³

616

511

21

23

412

50

50

CCPL & Other Unsecured Lending

260

275

(5)

(3)

259

-

-

Deposits3

917

813

13

14

951

(4)

(4)

Mortgages & Other Secured Lending3

103

161

(36)

(34)

57

81

84

Other

9

1

nm7

nm7

10

(10)

-

Operating expenses

(1,047)

(1,033)

(1)

(4)

(1,121)

7

6

Operating profit before impairment losses and taxation

870

739

18

18

580

50

49

Credit impairment

(136)

(62)

(119)

(127)

(131)

(4)

(5)

Other impairment

(5)

-

nm7

nm7

(4)

(25)

(67)

Underlying profit before taxation

729

677

8

8

445

64

61

Restructuring

(19)

(2)

nm7

nm7

(27)

30

25

Other items

(100)

-

nm7

nm7

-

nm7

nm7

Reported profit before taxation

610

675

(10)

(10)

418

46

43

Total assets

124,456

130,669

(5)

(3)

128,768

(3)

(1)

Of which: loans and advances to customers4

122,089

128,102

(5)

(3)

126,117

(3)

(1)

Total liabilities

201,870

188,050

7

9

200,263

1

2

Of which: customer accounts4

197,121

182,856

8

9

195,678

1

2

Risk-weighted assets

52,706

50,621

4

nm7

51,342

3

nm7

Income return on risk-weighted assets (%)5

14.7

14.1

60bps

nm7

13.2

150bps

nm7

Underlying return on tangible equity (%)5

28.8

28.0

80bps

nm7

17.9

1,090bps

nm7

Cost to income ratio (%)6

54.6

58.3

3.7

3.2

65.9

11.3

10.9

1   Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2   Variance is better/(worse), except for risk-weighted assets, assets and liabilities which is increase/(decrease)

3   Products are now presented to reflect the RNS on Presentation of Financial Information issued on 2 April 2024. Prior periods have been restated and there is no change in total income

4   Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

5   Change is the basis points (bps) difference between the two periods rather than the percentage change

6   Change is the percentage points difference between the two periods rather than the percentage change

7   Not meaningful

Performance highlights

•  Underlying profit before tax of $729 million was up 8 per cent at constant currency (ccy) mainly driven by higher income partly offset by higher expenses and impairments

•  Underlying operating income of $1,917 million was up 10 per cent at ccy off the back of strong leading indicators with continued momentum in Affluent new to bank client onboarding and net new money which doubled year-on-year to $11 billion. This led to double digit growth across all products

•  Underlying operating expenses increased 4 per cent at ccy, mainly from inflation and investment in business growth initiatives, including relationship managers

•  Credit impairment of $136 million increased $74 million reflecting a level of charge broadly in line with recent quarters  

•  Customer accounts increased 2 per cent at ccy since 31 December 2023 due to strong growth driven by Affluent clients

•  RoTE increased 80 basis points to 28.8 per cent from 28.0 per cent in Q1'23

Page 16



 

 

Supplementary financial information continued

Ventures


Q1'24
$million

Q1'23
$million

Change2
%

Constant currency change1,2
%

Q4'23
$million

Change2
%

Constant currency change1,2
%

Operating income

32

17

88

88

32

-

(3)

Of which: SCV

3

3

-

-

6

(50)

(57)

Of which: Digital Banks6

29

14

107

107

26

12

12

CCPL & Other Unsecured Lending

27

15

80

80

29

(7)

(7)

Deposits

(9)

(10)

10

10

(18)

50

50

Treasury

1

5

(80)

(80)

10

(90)

(89)

Other

13

7

86

86

11

18

-

Operating expenses

(113)

(102)

(11)

(11)

(109)

(4)

(3)

Operating loss before impairment losses and taxation

(81)

(85)

5

5

(77)

(5)

(5)

Credit impairment

(28)

(10)

(180)

(180)

(32)

13

13

Other impairment

-

-

nm7

nm7

(17)

nm7

nm7

Profit from associates and joint ventures

(3)

(8)

63

63

(7)

57

57

Underlying loss before taxation

(112)

(103)

(9)

(9)

(133)

16

16

Restructuring

-

-

nm7

nm7

(3)

100

100

Reported loss before taxation

(112)

(103)

(9)

(9)

(136)

18

18

Total assets

4,916

2,683

83

94

4,009

23

30

Of which: loans and advances to customers3

1,024

812

26

26

1,035

(1)

-

Total liabilities

3,967

1,955

103

104

3,096

28

30

Of which: customer accounts3

3,694

1,767

109

110

2,825

31

32

Risk-weighted assets

2,084

1,627

28

nm7

1,923

(8)

nm7

Income return on risk-weighted assets (%)4

7.2

5.5

170bps

nm7

7.9

(70)bps

nm7

Underlying return on tangible equity (%)4

nm7

nm7

nm7

nm7

nm7

nm7

nm7

Cost to income ratio (%)5

nm7

nm7

nm7

nm7

nm7

nm7

nm7

1      Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2      Variance is better/(worse), except for risk-weighted assets, assets and liabilities which is increase/(decrease)

3      Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

4      Change is the basis points (bps) difference between the two periods rather than the percentage change

5      Change is the percentage points difference between the two periods rather than the percentage change

6      Digital Banks income include Mox and Trust bank

7      Not meaningful

Performance highlights

•  Underlying loss before tax increased $9 million to $112 million reflecting the Group's continued investment in transformational digital initiatives. Income almost doubled to $32 million but this increase was offset by increased expenses

•  The impairment charge increased $18 million to $28 million reflecting increased bankruptcy related write-offs in Mox and the build of expected credit loss provisions as the credit portfolios grew

•  Loans and advances to customers of $1 billion increased 26 per cent year-on-year (YoY), whilst customer accounts of $3.7 billion increased 110 per cent YoY, with strong growth in the two digital banks, Mox and Trust

Page 17

 



 

Supplementary financial information continued

Central & other items


Q1'24
$million

Q1'23
$million

Change2
%

Constant currency change1,2
%

Q4'23
$million

Change2
%

Constant currency change1,2
%

Operating income

88

(285)

131

132

(290)

130

132

Treasury

42

(238)

118

118

(245)

117

118

Other

46

(47)

198

nm7

(45)

nm7

nm7

Operating expenses

(203)

(125)

(62)

(69)

(210)

3

8

Operating loss before impairment losses
and taxation

(115)

(410)

72

72

(500)

77

77

Credit impairment

(12)

38

(132)

(134)

(4)

nm7

nm7

Other impairment

(2)

-

nm7

nm7

(22)

91

91

Profit from associates and joint ventures

2

19

(89)

(89)

4

(50)

(50)

Underlying loss before taxation

(127)

(353)

64

64

(522)

76

76

Restructuring

(25)

11

nm7

nm7

19

nm7

nm7

Goodwill & other impairment6

-

-

nm7

nm7

(153)

100

100

Other items

(12)

-

nm7

nm7

-

nm7

nm7

Reported loss before taxation

(164)

(342)

52

51

(656)

75

75

Total assets

268,063

292,453

(8)

(7)

287,009

(7)

(5)

Of which: loans and advances to customers3

25,725

36,816

(30)

(29)

28,939

(11)

(9)

Total liabilities

105,777

103,669

2

3

104,164

2

2

Of which: customer accounts3

10,610

5,792

83

87

7,908

34

35

Risk-weighted assets

46,726

50,095

(7)

nm⁷

48,907

(4)

nm⁷

Income return on risk-weighted assets (%)4

0.7

(2.3)

300bps

nm7

(2.4)

310bps

nm7

Underlying return on tangible equity (%)4

(16.7)

(25.7)

900bps

nm7

(18.8)

210bps

nm7

Cost to income ratio (%) (excluding UK bank levy)5

nm7

nm7

nm7

nm7

nm7

nm7

nm7

1   Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2   Variance is better/(worse), except for risk-weighted assets, assets and liabilities which is increase/(decrease)

3   Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

4   Change is the basis points (bps) difference between the two periods rather than the percentage change

5   Change is the percentage points difference between the two periods rather than the percentage change

6   Goodwill and other impairment include $153 million impairment charge relating to the Group's investment in its associate China Bohai Bank (Bohai)

7   Not meaningful

Performance highlights

•  Underlying loss before tax of $127 million just over one-third of the prior period loss with higher income partly offset by $78 million higher expenses from project costs and other items that are temporarily held centrally before recharging to client segments whilst there was a credit impairment charge of $12 million from sovereign-related exposures. Associate income reduced by $17 million reflecting lower profits at China Bohai Bank

•  Underlying operating income of $88 million in Q1'24 is $373 million better year-on-year. Treasury income increased by $280 million mostly from translation gains on revaluation of FX positions in Egypt of $158 million and benefits from the roll-off of the short-term hedges of $97 million. Other products increased $93 million of which $76 million relates to a hyperinflationary accounting adjustment in Ghana

Page 18

 



 

Supplementary financial information continued

Underlying performance by key geography


Q1'24

Hong Kong
$million

Korea
$million

China
$million

Taiwan
$million

Singapore
$million

India
$million

UAE
$million

UK
$million

US
$million

Other2,3
$million

Group
$million

Operating income

1,145

296

322

159

670

337

237

83

256

1,647

5,152

Operating expenses

(474)

(171)

(213)

(83)

(306)

(220)

(106)

(232)

(171)

(810)

(2,786)

Operating profit/(loss) before impairment losses and taxation

671

125

109

76

364

117

131

(149)

85

837

2,366

Credit impairment

(39)

(7)

(44)

(10)

3

(11)

(3)

(14)

1

(52)

(176)

Other impairment

(12)

-

(5)

(1)

(8)

(6)

(3)

(16)

(4)

(5)

(60)

Profit from associates and
joint ventures

-

-

2

-

-

-

-

(2)

-

(1)

(1)

Underlying profit/(loss) before taxation

620

118

62

65

359

100

125

(181)

82

779

2,129

Total assets employed

198,501

51,199

43,959

22,209

106,277

35,858

24,559

141,084

74,178

114,701

812,525

Of which: loans and advances
to customers1

88,136

29,721

17,525

11,177

63,469

14,685

9,114

28,114

24,325

52,657

338,923

Total liabilities employed

181,755

42,146

37,470

20,781

112,289

27,487

17,715

102,065

62,176

157,802

761,686

Of which: customer accounts1

152,489

32,814

27,249

18,077

88,089

20,231

13,535

76,916

32,730

59,374

521,504

 


Q1'23

Hong Kong
$million

Korea
$million

China
$million

Taiwan
$million

Singapore
$million

India
$million

UAE
$million

UK
$million

US
$million

Other3
$million

Group
$million

Operating income

1,036

312

283

146

638

311

214

77

234

1,145

4,396

Operating expenses

(485)

(179)

(222)

(80)

(290)

(208)

(95)

(203)

(170)

(743)

(2,675)

Operating profit/(loss) before impairment losses and taxation

551

133

61

66

348

103

119

(126)

64

402

1,721

Credit impairment

(22)

(15)

(9)

(22)

17

(3)

2

3

7

16

(26)

Other impairment

-

-

-

-

-

-

(1)

(8)

-

9

-

Profit from associates and
joint ventures

-

-

17

-

-

-

-

-

-

(6)

11

Underlying profit/(loss) before taxation

529

118

69

44

365

100

120

(131)

71

421

1,706

Total assets employed

174,341

63,736

42,880

21,728

94,292

32,852

20,215

174,342

81,976

114,316

820,678

Of which: loans and advances
to customers1

84,891

42,426

15,610

11,186

62,777

14,350

9,010

38,615

20,562

47,638

347,065

Total liabilities employed

165,874

54,131

34,713

20,171

103,860

25,798

15,201

138,910

67,774

144,235

770,667

Of which: customer accounts1

138,604

41,163

26,554

18,724

78,810

19,311

12,128

99,974

34,022

57,121

526,411

1      Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

2      Other includes notable items of Egypt revaluation and Ghana hyperinflation

3      Underlying performance by key geography now include "Other", as a consolidation of all the other geographies to reflect the RNS Presentation of Financial Information we issued on 2 April 2024

Page 19



 

Supplementary financial information continued


Q4'23

Hong Kong
$million

Korea
$million

China
$million

Taiwan
$million

Singapore
$million

India
$million

UAE
$million

UK
$million

US
$million

Other2
$million

Group
$million

Operating income

1,008

217

275

125

557

269

182

(103)

206

1,288

4,024

Operating expenses

(489)

(192)

(234)

(84)

(312)

(203)

(93)

(218)

(149)

(888)

(2,862)

Operating profit/(loss) before impairment losses and taxation

519

25

41

41

245

66

89

(321)

57

400

1,162

Credit impairment

(60)

(3)

(33)

(9)

(26)

(18)

3

7

2

75

(62)

Other impairment

(16)

1

(4)

(5)

(11)

(10)

(5)

(15)

(9)

33

(41)

Profit from associates and
joint ventures

-

-

(1)

-

-

-

-

-

-

(2)

(3)

Underlying profit/(loss) before taxation

443

23

3

27

208

38

87

(329)

50

506

1,056

Total assets employed

190,484

56,638

41,508

21,638

102,724

33,781

20,376

149,982

88,113

117,600

822,844

Of which: loans and advances
to customers1

87,590

33,443

15,882

11,634

62,030

13,832

8,495

31,067

27,434

54,079

345,486

Total liabilities employed

183,112

46,666

38,252

20,365

109,825

26,532

17,214

92,168

72,583

165,774

772,491

Of which: customer accounts1

155,446

37,032

31,211

18,621

86,282

18,709

13,924

72,610

40,846

59,941

534,622

1      Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

2      Underlying performance by key geography now include "Other", as a consolidation of all the other geographies to reflect the RNS Presentation of Financial Information we issued on 2 April 2024

Page 20



 

Supplementary financial information continued

Quarterly underlying operating income by product


Q1'24
$million

Q4'231
$million

Q3'231
$million

Q2'231
$million

Q1'231
$million

Q4'221
$million

Q3'221
$million

Q2'221
$million

Transaction Services1

1,615

1,659

1,667

1,620

1,572

1,416

1,221

964

Payments and Liquidity

1,161

1,207

1,196

1,148

1,094

962

758

515

Securities & Prime Services

141

140

138

131

141

126

120

104

Trade & Working Capital

313

312

333

341

337

328

343

345

Banking1

472

400

447

447

411

400

459

429

Lending & Financial Solutions

414

358

393

396

353

366

410

380

Capital Market & Advisory

58

42

54

51

58

34

49

49

Markets1

1,041

534

716

877

922

662

907

801

Macro Trading

884

463

595

776

786

536

725

745

Credit Trading

167

92

122

116

121

123

163

79

Valuation & Other Adj

(10)

(21)

(1)

(15)

15

3

19

(23)

Wealth Solutions1

616

412

526

495

511

358

454

456

CCPL & Other Unsecured Lending

287

288

297

286

290

294

298

310

Deposits1

908

933

953

881

803

833

640

364

Mortgages & Other Secured Lending1

103

57

69

113

161

55

191

291

Treasury

43

(235)

(274)

(160)

(233)

(173)

(5)

201

Other

67

(24)

2

(4)

(41)

(80)

(27)

(33)

Total underlying operating income

5,152

4,024

4,403

4,555

4,396

3,765

4,138

3,783

1      Products are now presented to reflect the RNS on Presentation of Financial Information issued on 2 April 2024. Prior periods have been restated and there is no change in total income

 

Page 21

 



 

Supplementary financial information continued

Earnings per ordinary share


Q1'24
$million

Q1'23
$million

Change
%

Q4'23
$million

Change
%

Profit for the period attributable to equity holders

1,395

1,344

4

938

49

Non-controlling interest

8

(3)

nm4

(2)

nm4

Dividend payable on preference shares and AT1 classified
as equity

(180)

(178)

(1)

(29)

nm4

Profit for the period attributable to ordinary shareholders

1,223

1,163

5

907

35







Items normalised:






Restructuring

55

(48)

nm4

63

(13)

Goodwill and other impairment1

-

-

nm4

1531

nm4

DVA

48

(54)

nm4

(35)

nm4

Net losses / (gains) on sale of businesses

12

-

nm4

(262)

nm4

Other items3

100

-

nm4

-

nm4

Tax on normalised items

(45)

15

nm4

(17)

(165)

Underlying profit

1,393

1,076

29

809

72







Basic - Weighted average number of shares (millions)

2,632

2,860

(8)

2,664

(1)

Diluted - Weighted average number of shares (millions)

2,692

2,921

(8)

2,723

(1)







Basic earnings per ordinary share (cents)²

46.5

40.7

5.8

34.0

12.5

Diluted earnings per ordinary share (cents)²

45.4

39.8

5.6

33.3

12.1

Underlying basic earnings per ordinary share (cents)²

52.9

37.6

15.3

30.4

22.5

Underlying diluted earnings per ordinary share (cents)²

51.7

36.8

14.9

29.7

22.0

1   Goodwill and Other impairment include $153 million impairment charge relating to the Group's investment in its associate China Bohai Bank (Bohai)

2   Change is the percentage points difference between the two periods rather than the percentage change

3   Other items include $100m provision relating to Korea ELS

4   Not meaningful

Page 22

 



 

Supplementary financial information continued

Return on Tangible Equity


Q1'24
$million

Q1'23
$million

Change
%

Q4'23
$million

Change
%

Average parent company Shareholders' Equity

44,188

43,643

1

43,456

2

Less Average preference share capital and share premium

(1,494)

(1,494)

-

(1,494)

-

Less Average intangible assets

(6,184)

(5,880)

(5)

(6,106)

(1)

Average Ordinary Shareholders' Tangible Equity

36,510

36,269

1

35,856

2







Profit for the period attributable to equity holders

1,395

1,344

4

938

49

Non-controlling interests

8

(3)

nm3

(2)

nm3

Dividend payable on preference shares and AT1 classified
as equity

(180)

(178)

(1)

(29)

nm3

Profit for the period attributable to ordinary shareholders

1,223

1,163

5

907

35







Items normalised:






Restructuring

55

(48)

nm3

63

(13)

Goodwill and Other impairment

-

-

nm3

1531

nm3

Net losses/(gains) on sale of businesses

12

-

nm3

(262)

nm3

Ventures FVOCI unrealised (gains)/losses net of tax

(13)

(9)

(44)

37

nm3

DVA

48

(54)

nm3

(35)

nm3

Other items2

100

-

nm3

-

nm3

Tax on normalised items

(45)

15

nm3

(17)

(165)

Underlying profit for the period attributable to
ordinary shareholders

1,380

1,067

29

846

63







Underlying Return on Tangible Equity

15.2%

11.9%

330bps

9.4%

580bps

Reported Return on Tangible Equity

13.5%

13.0%

50bps

10.0%

350bps

1      Goodwill and Other impairment include $153 million impairment charge relating to the Group's investment in its associate China Bohai Bank (Bohai)

2   Other items include $100m provision relating to Korea ELS

3      Not meaningful

Net Tangible Asset Value per Share


31.03.24
$million

31.03.23
$million

Change
%

31.12.23
$million

Change
%

Parent company shareholders' equity

43,929

44,125

-

44,445

(1)

Less Preference share premium

(1,494)

(1,494)

-

(1,494)

-

Less Intangible assets

(6,153)

(5,891)

(4)

(6,214)

1

Net shareholders tangible equity

36,282

36,740

(1)

36,737

(1)







Ordinary shares in issue, excluding own shares (millions)

2,610

2,833

(8)

2,637

(1)

Net Tangible Asset Value per share (cents)1

1,390

1,297

93

1,393

(3)

1      Change is cents difference between the two periods rather than the percentage change

Page 23


Underlying versus reported results reconciliations

Reconciliations between underlying and reported results are set out in the tables below:

Operating income by client segment


Q1'24

Corporate & Investment Banking
$million

Wealth &
Retail Banking
$million

Ventures
$million

Central &
other items
$million

Total
$million

Underlying operating income

3,115

1,917

32

88

5,152

Restructuring

21

11

-

6

38

DVA

(48)

-

-

-

(48)

Other items

-

-

-

(12)

(12)

Reported operating income

3,088

1,928

32

82

5,130

 


Q1'23

Corporate & Investment Banking
$million

Wealth &
Retail Banking
$million

Ventures
$million

Central &
other items
$million

Total
$million

Underlying operating income

2,892

1,772

17

(285)

4,396

Restructuring

95

13

-

2

110

DVA

54

-

-

-

54

Other items

-

-

-

-

-

Reported operating income

3,041

1,785

17

(283)

4,560

Net interest income and non NII


Q1'24

Q1'23

Underlying
$million

Restructuring
$million

Adjustment for trading book funding cost and others
$million

Reported
$million

Underlying
$million

Restructuring
$million

Adjustment for trading book funding cost and others
$million

Reported
$million

Net interest income1

2,419

10

(857)

1,572

2,341

(1)

(334)

2,006

Non NII1

2,733

(32)

857

3,558

2,055

165

334

2,554

Total income

5,152

(22)

-

5,130

4,396

164

-

4,560

1      To be consistent with how we the compute Net Interest Margin, we have changed our definition of Underlying Net Interest Income (NII) and Underlying non NII. The adjustments made to NIM, including Interest expense relating to funding our trading book, will now be shown against Underlying non NII rather than Underlying NII. There is no impact on total income

Page 24

 



 

Underlying versus reported results reconciliations continued

Profit before taxation (PBT)


Q1'24

Underlying
$million

Restructuring
$million

Net loss on businesses disposed/
 held for sale
$million

Other items
$million

DVA
$million

Reported
$million

Operating income

5,152

38

(12)

-

(48)

5,130

Operating expenses

(2,786)

(111)

-

(100)

-

(2,997)

Operating profit/(loss) before impairment losses and taxation

2,366

(73)

(12)

(100)

(48)

2,133

Credit impairment

(176)

11

-

-

-

(165)

Other impairment

(60)

-

-

-

-

(60)

Profit from associates and joint ventures

(1)

7

-

-

-

6

Profit/(loss) before taxation

2,129

(55)

(12)

(100)

(48)

1,914

 


Q1'23

Underlying
$million

Restructuring
$million

Net gain on businesses disposed/
held for sale
$million

Other items
$million

DVA
$million

Reported
$million

Operating income

4,396

110

-

-

54

4,560

Operating expenses

(2,675)

(75)

-

-

-

(2,750)

Operating profit/(loss) before impairment losses and taxation

1,721

35

-

-

54

1,810

Credit impairment

(26)

6

-

-

-

(20)

Other impairment

-

-

-

-

-

-

Profit from associates and joint ventures

11

7

-

-

-

18

Profit/(loss) before taxation

1,706

48

-

-

54

1,808

Profit before taxation (PBT) by client segment


Q1'24

Corporate & Investment Banking
$million

Wealth &
Retail Banking
$million

Ventures
$million

Central &
other items
$million

Total
$million

Operating income

3,115

1,917

32

88

5,152

External

2,545

888

32

1,687

5,152

Inter-segment

570

1,029

-

(1,599)

-

Operating expenses

(1,423)

(1,047)

(113)

(203)

(2,786)

Operating profit/(loss) before impairment losses and taxation

1,692

870

(81)

(115)

2,366

Credit impairment

-

(136)

(28)

(12)

(176)

Other impairment

(53)

(5)

-

(2)

(60)

Profit from associates and joint ventures

-

-

(3)

2

(1)

Underlying profit/(loss) before taxation

1,639

729

(112)

(127)

2,129

Restructuring

(11)

(19)

-

(25)

(55)

DVA

(48)

-

-

-

(48)

Other items

-

(100)

-

(12)

(112)

Reported profit/(loss) before taxation

1,580

610

(112)

(164)

1,914



 

Page 25

Underlying versus reported results reconciliations continued

 

Q1'23

Operating income

2,892

1,772

17

(285)

4,396

External

2,313

1,126

17

940

4,396

Inter-segment

579

646

-

(1,225)

-

Operating expenses

(1,415)

(1,033)

(102)

(125)

(2,675)

Operating profit/(loss) before impairment losses and taxation

1,477

739

(85)

(410)

1,721

Credit impairment

8

(62)

(10)

38

(26)

Profit from associates and joint ventures

-

-

(8)

19

11

Underlying profit/(loss) before taxation

1,485

677

(103)

(353)

1,706

Restructuring

39

(2)

-

11

48

DVA

54

-

-

-

54

Reported profit/(loss) before taxation

1,578

675

(103)

(342)

1,808

Return on tangible equity (RoTE)


Q1'24

Corporate & Investment Banking
%

Wealth &
Retail Banking
%

Ventures
%

Central &
other items
%

Total
%

Underlying RoTE

23.0

28.8

nm²

(16.7)

15.2

Restructuring






Of which: Income

0.4

0.6

-

0.3

0.4

Of which: Expenses

(0.8)

(1.6)

-

(2.1)

(1.2)

Of which: Credit impairment

0.2

-

-

-

0.1

Of which: Other impairment

-

-

-

-

-

Of which: Profit from associates and joint ventures

-

-

-

0.4

0.1

Net loss on businesses disposed/held for sale1

-

-

-

(0.7)

(0.1)

Ventures FVOCI Unrealised gains / (losses) net of taxes

-

-

-

-

0.1

DVA

(0.9)

-

-

-

(0.5)

Other items

-

(5.3)

-

-

(1.1)

Tax on normalised items

0.3

1.6

-

-

0.5

Reported RoTE

22.2

24.1

nm²

(18.8)

13.5

 

Q1'23

Underlying RoTE

21.2

28.0

nm²

(25.7)

11.9

Restructuring






Of which: Income

1.8

0.7

-

0.1

1.4

Of which: Expenses

(1.1)

(0.8)

-

(0.2)

(0.8)

Of which: Credit impairment

-

-

-

0.2

0.1

Of which: Other impairment

(0.1)

-

-

0.1

-

Of which: Profit from associates and joint ventures

-

-

-

0.4

0.1

Ventures FVOCI Unrealised gains / (losses) net of taxes

-

-

-

-

(0.1)

DVA

1.0

-

-

-

0.6

Tax on normalised items

(0.3)

-

nm²

0.4

(0.2)

Reported RoTE

22.5

27.9

nm²

(24.7)

13.0

1      Net loss on businesses includes the loss of $12 million in relation to a sale of a portfolio of Aviation loans

2      Not meaningful

3      Segmental RoTE is the ratio of the current year's underlying profit to the average tangible equity. Average Tangible Equity has been derived based on average RWA

Page 26

 



 

Underlying versus reported results reconciliations continued

Earnings per ordinary share (EPS)


Q1'24

Underlying
$ million

Restructuring
$ million

DVA
$ million

Net loss
on sale of business
$ million

Other items1
$ million

Tax on normalised items
$ million

Reported
$ million

Profit for the year attributable to ordinary shareholders

1,393

(55)

(48)

(12)

(100)

45

1,223

Basic - Weighted average number of shares (millions)

Basic earnings per ordinary share (cents)

52.9






46.5

 


Q1'23

Underlying
$ million

Restructuring
$ million

DVA
$ million

Net gain
on sale of business
$ million

Other items
$ million

Tax on normalised items
$ million

Reported
$ million

Profit for the year attributable to ordinary shareholders

1,076

48

54

-

-

(15)

1,163

Basic - Weighted average number of shares (millions)

2,860






2,860

Basic earnings per ordinary share (cents)

37.6






40.7

1      Other items include $100m provision relating to Korea ELS

Page 27


Risk review

Credit quality by client segment

Amortised cost

31.03.24

Banks
$million

Customers

Undrawn commitments
$million

Financial Guarantees
$million

Corporate & Investment Banking
$million

Wealth & Retail Banking
$million

Ventures
$million

Central & other items
$million

Customer Total
$million

Stage 1

39,437

125,119

119,592

1,014

26,408

272,133

172,631

74,702

- Strong

30,079

85,999

114,257

1,000

25,964

227,220

157,541

51,800

- Satisfactory

9,358

39,120

5,335

14

444

44,913

15,090

22,902

Stage 2

195

7,402

2,067

51

-

9,520

4,970

1,916

- Strong

59

1,151

1,533

33

-

2,717

1,122

400

- Satisfactory

104

5,274

5,450

3,333

1,307

- Higher risk

32

977

364

12

-

1,353

515

209

Of which (stage 2):









- Less than 30 days past due

-

- More than 30 days past due

-

Stage 3, credit-impaired financial assets

84

5,396

1,532

10

52

6,990

5

683

Gross balance¹

39,716

137,917

123,191

1,075

26,460

288,643

177,606

77,301

Stage 1

(5)

(140)

(320)

(18)

-

(478)

(52)

(14)

- Strong

(3)

(73)

(250)

(17)

-

(340)

(35)

(5)

- Satisfactory

(2)

(67)

(70)

(1)

-

(138)

(17)

(9)

Stage 2

(8)

(204)

(132)

(23)

-

(359)

(44)

(9)

- Strong

(1)

(5)

(50)

(16)

-

(71)

(5)

-

- Satisfactory

(1)

(142)

(169)

(24)

(3)

- Higher risk

(6)

(57)

(58)

(4)

-

(119)

(15)

(6)

Of which (stage 2):









- Less than 30 days past due

-

- More than 30 days past due

-

Stage 3, credit-impaired financial assets

(5)

(3,631)

(735)

(10)

(27)

(4,403)

-

(126)

Total credit impairment

(18)

(3,975)

(1,187)

(51)

(27)

(5,240)

(96)

(149)

Net carrying value

39,698

133,942

122,004

1,024

26,433

283,403



Stage 1

0.0%

0.1%

0.3%

1.8%

0.0%

0.2%

0.0%

0.0%

- Strong

0.0%

0.1%

0.2%

1.7%

0.0%

0.1%

0.0%

0.0%

- Satisfactory

0.0%

0.2%

1.3%

7.1%

0.0%

0.3%

0.1%

0.0%

Stage 2

4.1%

2.8%

6.4%

45.1%

0.0%

3.8%

0.9%

0.5%

- Strong

1.7%

0.4%

3.3%

48.5%

0.0%

2.6%

0.5%

0.0%

- Satisfactory

1.0%

2.7%

3.1%

0.7%

0.2%

- Higher risk

18.8%

5.8%

15.9%

33.3%

0.0%

8.8%

2.9%

2.9%

Of which (stage 2):









- Less than 30 days past due

0.0%

- More than 30 days past due

0.0%

Stage 3, credit-impaired financial assets (S3)

6.0%

67.3%

48.0%

100.0%

51.9%

63.0%

0.0%

18.4%

Cover ratio

0.0%

2.9%

1.0%

4.7%

0.1%

1.8%

0.1%

0.2%

Fair value through profit or loss









Performing

36,402

55,472

11

-

2

55,485

-

-

- Strong

31,475

37,934

11

-

2

37,947

-

-

- Satisfactory

4,927

17,490

17,490

-

-

- Higher risk

-

48

-

-

-

48

-

-

Defaulted (CG13-14)

-

33

-

-

-

33

-

-

Gross balance (FVTPL)2

36,402

55,505

11

-

2

55,518

-

-

Net carrying value (incl FVTPL)

76,100

189,447

122,015

1,024

26,435

338,921

-

-

1      Loans and advances includes reverse repurchase agreements and other similar secured lending of $11,290 million under Customers and of $2,542 million under Banks, held at amortised cost

2      Loans and advances includes reverse repurchase agreements and other similar secured lending of $47,568 million under Customers and of $33,441 million under Banks, held at fair value through profit or loss

Page 28

 

Risk review continued

 

Amortised cost

31.12.23

Customers

Stage 1

44,384

120,886

123,486

1,015

28,305

273,692

176,654

70,832

- Strong

35,284

84,248

118,193

1,000

27,967

231,408

162,643

47,885

- Satisfactory

9,100

36,638

5,293

15

338

42,284

14,011

22,947

Stage 2

540

7,902

2,304

54

965

11,225

5,733

2,910

- Strong

55

1,145

1,761

34

-

2,940

1,090

830

- Satisfactory

212

5,840

206

7

-

6,053

4,169

1,823

- Higher risk

273

917

337

13

965

2,232

474

257

Of which (stage 2):









- Less than 30 days past due

-

78

206

7

-

291

-

-

- More than 30 days past due

-

10

337

13

-

360

-

-

Stage 3, credit-impaired financial assets

77

5,508

1,484

12

224

7,228

3

672

Gross balance1

45,001

134,296

127,274

1,081

29,494

292,145

182,390

74,414

Stage 1

(8)

(101)

(314)

(15)

-

(430)

(52)

(10)

- Strong

(3)

(34)

(234)

(14)

-

(282)

(31)

(2)

- Satisfactory

(5)

(67)

(80)

(1)

-

(148)

(21)

(8)

Stage 2

(10)

(257)

(141)

(21)

(1)

(420)

(39)

(14)

- Strong

(1)

(18)

(65)

(14)

-

(97)

(5)

-

- Satisfactory

(2)

(179)

(22)

(3)

-

(204)

(23)

(7)

- Higher risk

(7)

(60)

(54)

(4)

(1)

(119)

(11)

(7)

Of which (stage 2):









- Less than 30 days past due

-

(2)

(22)

(3)

-

(27)

-

-

- More than 30 days past due

-

(1)

(54)

(4)

-

(59)

-

-

Stage 3, credit-impaired financial assets

(6)

(3,533)

(760)

(12)

(15)

(4,320)

-

(112)

Total credit impairment

(24)

(3,891)

(1,215)

(48)

(16)

(5,170)

(91)

(136)

Net carrying value

44,977

130,405

126,059

1,033

29,478

286,975

-

-

Stage 1

0.0%

0.1%

0.3%

1.5%

0.0%

0.2%

0.0%

0.0%

- Strong

0.0%

0.0%

0.2%

1.4%

0.0%

0.1%

0.0%

0.0%

- Satisfactory

0.1%

0.2%

1.5%

6.7%

0.0%

0.4%

0.1%

0.0%

Stage 2

1.9%

3.3%

6.1%

38.9%

0.1%

3.7%

0.7%

0.5%

- Strong

1.8%

1.6%

3.7%

41.2%

0.0%

3.3%

0.5%

0.0%

- Satisfactory

0.9%

3.1%

10.7%

42.9%

0.0%

3.4%

0.6%

0.4%

- Higher risk

2.6%

6.5%

16.0%

30.8%

0.1%

5.3%

2.3%

2.7%

Of which (stage 2):









- Less than 30 days past due

0.0%

2.6%

10.7%

42.9%

0.0%

9.3%

0.0%

0.0%

- More than 30 days past due

0.0%

10.0%

16.0%

30.8%

0.0%

16.4%

0.0%

0.0%

Stage 3, credit-impaired financial assets (S3)

7.8%

64.1%

51.2%

100.0%

6.7%

59.8%

0.0%

16.7%

Cover ratio

0.1%

2.9%

1.0%

4.4%

0.1%

1.8%

0.0%

0.2%

Fair value through profit or loss









Performing

32,813

58,465

13

-

-

58,478

-

-

- Strong

28,402

38,014

13

-


38,027

-

-

- Satisfactory

4,411

20,388

-

-

-

20,388

-

-

- Higher risk

-

63

-

-

-

63

-

-

Defaulted (CG13-14)

-

33

-

-

-

33

-

-

Gross balance (FVTPL)2

32,813

58,498

13

-

-

58,511

-

-

Net carrying value (incl FVTPL)

77,790

188,903

126,072

1,033

29,478

345,486

-

-

1      Loans and advances includes reverse repurchase agreements and other similar secured lending of $13,996 million under Customers and of $1,738 million under Banks, held at amortised cost

2      Loans and advances includes reverse repurchase agreements and other similar secured lending of $51,229 million under Customers and of $30,548 million under Banks, held at fair value through profit or loss

Page 29

 

Risk review continued

Credit impairment charge


3 months ended 31.03.24

3 months ended 31.03.23

Stage 1 & 2
$million

Stage 3
$million

Total
$million

Stage 1 & 2
$million

Stage 3
$million

Total
$million

Ongoing business portfolio







Corporate & Investment Banking

(10)

10

-

24

(32)

(8)

Wealth & Retail Banking

63

73

136

13

49

62

Ventures

9

19

28

6

4

10

Central & Other items

(1)

13

12

(37)

(1)

(38)

Credit impairment charge / (release)

61

115

176

6

20

26

Others

1

(12)

(11)

1

(7)

(6)

Credit impairment charge / (release)

1

(12)

(11)

1

(7)

(6)

Total credit impairment charge / (release)

62

103

165

7

13

20

Vulnerable, cyclical and high carbon sectors

Maximum Exposure

Amortised Cost

31.03.24

Maximum
On Balance Sheet Exposure (net of credit impairment)
$million

Collateral
$million

Net On Balance Sheet Exposure
$million

Undrawn Commitments (net of credit impairment)
$million

Financial Guarantees (net of credit impairment)
$million

Net Off Balance Sheet Exposure
$million

Total On & Off Balance Sheet Net Exposure
$million

Industry:








Automotive manufacturers1

3,413

Aviation1,2

1,759

Of which : High Carbon Sector

927

Commodity Traders2

2,445

Metals & Mining1,2

6,541

Of which : Steel1

1,143

Of which : Coal Mining1

50

Of which: Aluminium1

444

Shipping1

2,409

Construction2

2,710

Of which: Cement1

665

Commercial Real Estate2

4,741

Of which : High Carbon Sector

1,937

Hotels & Tourism2

1,308

Oil & Gas1,2

8,862

Power1

5,209

1,029

4,180

4,015

795

4,810

8,990

Total3

58,335

14,528

43,807

38,203

24,336

62,539

106,346

Of which: Vulnerable and cyclical sectors

41,333

9,427

31,906

25,749

22,164

47,913

79,819

Of which: High carbon sectors

36,594

9,908

26,686

26,482

10,797

37,279

63,965

Total Corporate & Investment Banking4

133,942

30,584

103,358

109,772

66,254

176,026

279,384

Total Group4

323,101

121,034

202,067

177,510

77,152

254,662

456,729

1      High carbon sectors

2      Vulnerable and cyclical sectors

3      Maximum On Balance sheet exposure include FVTPL portion of $1,340 million, of which Vulnerable sector is $1,290 million and High Carbon sector is $398 million  

4      Exclude On Balance sheet FVTPL amount of $55,505 million for Corporate & Investment Banking and $91,920 million for Group

Page 30


Risk review continued

 

Amortised Cost

31.12.23

Industry:








Automotive manufacturers1

3,564

65

3,499

3,791

538

4,329

7,828

Aviation1,2

1,775

974

801

1,794

668

2,462

3,263

Of which : High Carbon Sector

1,330

974

356

944

615

1,559

1,915

Commodity Traders2

7,406

303

7,103

2,591

6,281

8,872

15,975

Metals & Mining1,2

4,589

307

4,282

3,373

1,218

4,591

8,873

Of which : Steel1

1,596

193

1,403

601

358

959

2,362

Of which : Coal Mining1

29

9

20

51

99

150

170

Of which: Aluminium1

526

9

517

338

188

526

1,043

Shipping1

5,964

3,557

2,407

2,261

291

2,552

4,959

Construction2

2,853

448

2,405

2,753

5,927

8,680

11,085

Of which: Cement1,4

671

47

624

769

259

1,028

1,652

Commercial Real Estate2

14,533

6,363

8,170

4,658

311

4,969

13,139

Of which : High Carbon Sector

7,498

3,383

4,115

1,587

112

1,699

5,814

Hotels & Tourism2

1,680

715

965

1,339

227

1,566

2,531

Oil & Gas1,2

6,278

894

5,384

7,845

6,944

14,789

20,173

Power1

5,411

1,231

4,180

3,982

732

4,714

8,894

Total3

54,053

14,857

39,196

34,387

23,137

57,524

96,720

Of which: Vulnerable and cyclical sectors4

38,661

10,051

28,610

24,842

21,511

46,353

74,963

Of which: High carbon sectors4

34,984

10,458

24,526

24,552

10,709

35,261

59,787

Total Corporate & Investment Banking5

130,405

32,744

97,661

104,437

63,183

167,620

265,281

Total Group5

331,952

125,760

206,192

182,299

74,278

256,577

462,769

1      High carbon sectors

2      Vulnerable and cyclical sectors

3      Maximum On Balance sheet exposure include FVTPL portion of $977 million, of which Vulnerable sector is $602 million and High Carbon sector is $472 million

4  Included to provide consistency with climate reporting

5  Exclude On Balance sheet FVTPL amount of $58,498 million for Corporate & Investment Banking and $91,324 million for Group



 

Page 31

 

Risk review continued

Loans and advances by stage

Amortised Cost

31.03.24

Stage 1

Stage 2

Stage 3

Total

Gross Balance
$million

Total
Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total
Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total
Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total
Credit Impairment
$million

Net Carrying Amount
$million

Industry:













Aviation

1,617

-

1,617

53

(1)

52

69

(13)

56

1,739

(14)

1,725

Commodity Traders

8,205

(2)

8,203

78

(1)

77

533

(496)

37

8,816

(499)

8,317

Metals & Mining

3,239

(2)

3,237

113

(5)

108

122

(72)

50

3,474

(79)

3,395

Construction

2,674

(2)

2,672

292

(2)

290

375

(336)

39

3,341

(340)

3,001

Commercial Real Estate

12,118

(64)

12,054

1,659

(80)

1,579

1,740

(1,252)

488

15,517

(1,396)

14,121

Hotels & Tourism

1,653

(2)

1,651

204

(1)

203

118

(49)

69

1,975

(52)

1,923

Oil & Gas

6,628

(5)

6,623

570

(12)

558

532

(152)

380

7,730

(169)

7,561

Total

36,134

(77)

36,057

2,969

(102)

2,867

3,489

(2,370)

1,119

42,592

(2,549)

40,043

Total Corporate & Investment Banking

125,119

(140)

124,979

7,402

(204)

7,198

5,396

(3,631)

1,765

137,917

(3,975)

133,942

Total Group

311,570

(483)

311,087

9,715

(367)

9,348

7,074

(4,408)

2,666

328,359

(5,258)

323,101

 

Amortised Cost

31.12.23

Stage 1

Stage 2

Stage 3

Total

Gross Balance
$million

Total
Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total
Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total
Credit Impairment
$million

Net Carrying Amount
$million

Gross Balance
$million

Total
Credit Impairment
$million

Net Carrying Amount
$million

Industry:













Aviation

1,619

-

1,619

55

(1)

54

74

     

59

1,748

(16)

1,732

Commodity Traders

6,912

(2)

6,910

129

(1)

128

555

(504)

51

7,596

(507)

7,089

Metals & Mining

3,934

(1)

3,933

140

(8)

132

154

(88)

66

4,228

(97)

4,131

Construction

2,230

(2)

2,228

502

(8)

494

358

(326)

32

3,090

(336)

2,754

Commercial Real Estate

12,261

(30)

12,231

1,848

(129)

1,719

1,712

(1,191)

521

15,821

(1,350)

14,471

Hotels & Tourism

1,468

(2)

1,466

61

-

61

126

(25)

101

1,655

(27)

1,628

Oil & Gas

5,234

(4)

5,230

615

(15)

600

571

(147)

424

6,420

(166)

6,254

Total

33,658

(41)

33,617

3,350

(162)

3,188

3,550

(2,296)

1,254

40,558

(2,499)

38,059

Total Corporate & Investment Banking

120,886

(101)

120,785

7,902

(257)

7,645

5,508

(3,533)

1,975

134,296

(3,891)

130,405

Total Group

318,076

(438)

317,638

11,765

(430)

11,335

7,305

(4,326)

2,979

337,146

(5,194)

331,952

 

Page 32


Capital review

Capital ratios


31.03.24

31.12.23

Change2

31.03.23

Change2

CET1

13.6%

14.1%

(0.5)

13.7%

(0.1)

Tier 1 capital

16.2%

16.3%

(0.1)

15.9%

0.3

Total capital

20.8%

21.2%

(0.4)

20.9%

(0.1)

Capital base1


31.03.24
$million

31.12.23
$million

Change3
%

31.03.23
$million

Change3
%

CET1 instruments and reserves






Capital instruments and the related share premium accounts

5,295

5,321

-

5,407

(2)

Of which: share premium accounts

3,989

3,989

-

3,989

-

Retained earnings

27,502

24,930

10

26,936

2

Accumulated other comprehensive income (and other reserves)

8,247

9,171

(10)

8,882

(7)

Non-controlling interests (amount allowed in consolidated CET1)

256

217

18

244

5

Independently reviewed interim and year-end profits

1,407

3,542

(60)

1,328

6

Foreseeable dividends

(830)

(768)

8

(659)

26

CET1 capital before regulatory adjustments

41,877

42,413

(1)

42,138

(1)

CET1 regulatory adjustments






Additional value adjustments (prudential valuation adjustments)

(726)

(730)

(1)

(801)

(9)

Intangible assets (net of related tax liability)

(6,066)

(6,128)

(1)

(5,859)

4

Deferred tax assets that rely on future profitability (excludes those arising from temporary differences)

(51)

(41)

24

(89)

(43)

Fair value reserves related to net losses on cash flow hedges

4

(91)

nm4

301

(99)

Deduction of amounts resulting from the calculation of excess expected loss

(784)

(754)

4

(739)

6

Net gains on liabilities at fair value resulting from changes in own credit risk

231

(100)

nm4

(186)

nm4

Defined-benefit pension fund assets

(103)

(95)

8

(144)

(28)

Fair value gains arising from the institution's own credit risk related to derivative liabilities

(70)

(116)

(40)

(146)

(52)

Exposure amounts which could qualify for risk weighting of 1,250%

(33)

(44)

(25)

(50)

(34)

Other regulatory adjustments to CET1 capital

-

-

-

(23)

nm4

Total regulatory adjustments to CET1

(7,598)

(8,099)

(6)

(7,736)

(2)

CET1 capital

34,279

34,314

-

34,402

-

Additional Tier 1 capital (AT1) instruments

6,506

5,512

18

5,512

18

AT1 regulatory adjustments

(20)

(20)

-

(20)

-

Tier 1 capital

40,765

39,806

2

39,894

2







Tier 2 capital instruments

11,803

11,965

(1)

12,454

(5)

Tier 2 regulatory adjustments

(30)

(30)

-

(30)

-

Tier 2 capital

11,773

11,935

(1)

12,424

(5)

Total capital

52,538

51,741

2

52,318

-

Total risk-weighted assets (unaudited)

252,116

244,151

3

250,893

-

1   Capital base is prepared on the regulatory scope of consolidation

2      Change is the percentage point difference between two periods, rather than percentage change

3      Variance is increase/(decrease) comparing current reporting period to prior periods

4      Not meaningful

Page 33

Capital review continued

Movement in total capital


3 months ended 31.03.24
$million

12 months ended 31.12.23
$million

CET1 at 1 January

34,314

34,157

Ordinary shares issued in the period and share premium

-

-

Share buy-back

(1,000)

(2,000)

Profit for the period

1,407

3,542

Foreseeable dividends deducted from CET1

(830)

(768)

Difference between dividends paid and foreseeable dividends

588

(372)

Movement in goodwill and other intangible assets

63

(326)

Foreign currency translation differences

(465)

(477)

Non-controlling interests

39

28

Movement in eligible other comprehensive income

151

464

Deferred tax assets that rely on future profitability

(10)

35

Decrease/(increase) in excess expected loss

(30)

(70)

Additional value adjustments (prudential valuation adjustment)

4

124

IFRS 9 transitional impact on regulatory reserves including day one

-

(106)

Exposure amounts which could qualify for risk weighting

11

59

Fair value gains arising from the institution's own Credit Risk related to derivative liabilities

46

(26)

Others

(9)

50

CET1 at 31 March/31 December

34,279

34,314




AT1 at 1 January

5,492

6,484

Net issuances (redemptions)

993

(1,000)

Foreign currency translation difference

-

8

Excess on AT1 grandfathered limit (ineligible)

1

-

AT1 at 31 March/31 December

6,486

5,492




Tier 2 capital at 1 January

11,935

12,510

Regulatory amortisation

907

1,416

Net issuances (redemptions)

(1,000)

(2,160)

Foreign currency translation difference

(71)

146

Tier 2 ineligible minority interest

-

19

Other

2

4

Tier 2 capital at 31 March/31 December

11,773

11,935

Total capital at 31 March/31 December

52,538

51,741

Page 34



 

Capital review continued

Risk-weighted assets by business


31.03.24

Credit risk
$million

Operational risk
$million

Market risk
$million

Total risk
$million

Corporate & Investment Banking

104,868

20,312

25,420

150,600

Wealth & Retail Banking

43,183

9,523

-

52,706

Ventures

1,939

142

3

2,084

Central & other items

43,019

(172)

3,879

46,726

Total risk-weighted assets

193,009

29,805

29,302

252,116

 


31.12.23

Credit risk
$million

Operational risk
$million

Market risk
$million

Total risk
$million

Corporate & Investment Banking

102,675

18,083

21,221

141,979

Wealth & Retail Banking

42,559

8,783

-

51,342

Ventures

1,885

35

3

1,923

Central & other items

44,304

960

3,643

48,907

Total risk-weighted assets

191,423

27,861

24,867

244,151

 


31.03.23

Credit risk
$million

Operational risk
$million

Market risk
$million

Total risk
$million

Corporate & Investment Banking

112,534

18,083

17,933

148,550

Wealth & Retail Banking

41,838

8,783

-

50,621

Ventures

1,591

35

1

1,627

Central & other items

44,669

960

4,466

50,095

Total risk-weighted assets

200,632

27,861

22,400

250,893

Movement in risk-weighted assets


Credit risk

Operational risk
$million

Market risk
$million

Total risk
$million

Corporate & Investment Banking
$million

Wealth & Retail Banking
$million

Ventures
$million

Central & other items
$million

Total
$million

At 31 December 2022

110,103

42,091

1,350

43,311

196,855

27,177

20,679

244,711

At 1 January 2023

110,103

42,091

1,350

43,311

196,855

27,177

20,679

244,711

Asset growth & mix

(4,424)

728

535

1,183

(1,978)

-

-

(1,978)

Asset quality

(391)

390

-

2,684

2,683

-

-

2,683

Risk-weighted assets efficiencies

-

-

-

(688)

(688)

-

-

(688)

Model updates

(597)

(151)

-

(151)

(899)

-

500

(399)

Methodology and policy changes

-

(196)

-

-

(196)

-

(800)

(996)

Acquisitions and disposals

(1,630)

-

-

-

(1,630)

-

-

(1,630)

Foreign currency translation

(386)

(303)

-

(2,035)

(2,724)

-

-

(2,724)

Other, including non-credit risk movements

-

-

-

-

-

684

4,488

5,172

At 31 December 2023

102,675

42,559

1,885

44,304

191,423

27,861

24,867

244,151

Asset growth & mix

Asset quality

Risk-weighted assets efficiencies

Model updates

Methodology and policy changes

Acquisitions and disposals

Foreign currency translation

Other, including non-credit risk movements

-

-

-

-

-

1,944

5,735

7,679

At 31 March 2024

104,868

43,183

1,939

43,019

193,009

29,805

29,302

252,116

Page 35

 

Capital review continued

Leverage Ratio


31.03.24
$million

31.12.23
$million

Change3
%

31.03.23
$million

Change3
%

Tier 1 capital

40,765

39,806

2

39,894

2

Derivative financial instruments

46,794

50,434

(7)

48,089

(3)

Derivative cash collateral

8,006

10,337

(23)

11,392

(30)

Securities financing transactions (SFTs)

94,841

97,581

(3)

85,412

11

Loans and advances and other assets

662,884

664,492

-

675,785

(2)

Total on-balance sheet assets

812,525

822,844

(1)

820,678

(1)

Regulatory consolidation adjustments1

(80,878)

(92,709)

(13)

(85,553)

(5)

Derivatives adjustments






Derivatives netting

(34,957)

(39,031)

(10)

(35,561)

(2)

Adjustments to cash collateral

(6,685)

(9,833)

(32)

(7,533)

(11)

Net written credit protection

1,423

1,359

5

1,256

13

Potential future exposure on derivatives

43,745

42,184

4

39,409

11

Total derivatives adjustments

3,526

(5,321)

nm4

(2,429)

nm4

Counterparty risk leverage exposure measure for SFTs

5,062

6,639

(24)

10,654

(52)

Off-balance sheet items

122,233

123,572

(1)

121,268

1

Regulatory deductions from Tier 1 capital

(7,757)

(7,883)

(2)

(7,404)

5

Total exposure measure excluding claims on central banks

854,711

847,142

1

857,214

-

Leverage ratio excluding claims on central banks (%)2

4.8%

4.7%

0.1

4.7%

0.1

Average leverage exposure measure excluding claims on
central banks

868,496

853,968

2

866,944

-

Average leverage ratio excluding claims on central banks (%)2

4.6%

4.6%

-

4.6%

-

Countercyclical leverage ratio buffer2

0.1%

0.1%

-

0.1%

-

G-SII additional leverage ratio buffer2

0.4%

0.4%

-

0.4%

-

1   Includes adjustment for qualifying central bank claims and unsettled regular way trades

2      Change is the percentage point difference two periods, rather than percentage change

3      Variance is increase/(decrease) comparing current reporting period to prior periods

4      Not meaningful

 

Page 36

Financial statements

Condensed consolidated interim income statement

For the three months ended 31 March 2024


3 months ended 31.03.24
$million

3 months ended 31.03.23
$million

Interest income

7,137

6,284

Interest expense

(5,565)

(4,278)

Net interest income

1,572

2,006

Fees and commission income

1,180

1,038

Fees and commission expense

(212)

(198)

Net fee and commission income

968

840

Net trading income

2,489

1,649

Other operating income

101

65

Operating income

5,130

4,560

Staff costs

(2,110)

(1,960)

Premises costs

(82)

(101)

General administrative expenses

(551)

(390)

Depreciation and amortisation

(254)

(299)

Operating expenses

(2,997)

(2,750)

Operating profit before impairment losses and taxation

2,133

1,810

Credit impairment

(165)

(20)

Goodwill, property, plant and equipment and other impairment

(60)

-

Profit from associates and joint ventures

6

18

Profit before taxation

1,914

1,808

Taxation

(519)

(464)

Profit for the period

1,395

1,344




Profit attributable to:



Non-controlling interests

(8)

3

Parent company shareholders

1,403

1,341

Profit for the period

1,395

1,344

 


cents

cents

Earnings per share:



Basic earnings per ordinary share

46.5

40.7

Diluted earnings per ordinary share

45.4

39.8

Page 37

 



 

Financial statements continued

Condensed consolidated interim statement of comprehensive income

For the three months ended 31 March 2024


3 months ended 31.03.24
$million

3 months ended 31.03.23
$million

Profit for the period

1,395

1,344

Other comprehensive (loss)/income



Items that will not be reclassified to income statement:

(268)

264

Own credit (losses)/gains on financial liabilities designated at fair value through profit or loss

(378)

293

Equity instruments at fair value through other comprehensive income

(20)

(22)

Actuarial gains on retirement benefit obligations

23

36

Taxation relating to components of other comprehensive income

1071

(43)

Items that may be reclassified subsequently to income statement:

(504)

445

Exchange differences on translation of foreign operations:



Net losses taken to equity

(706)

(79)

Net gains on net investment hedges

274

79

Share of other comprehensive income/(loss) from associates and joint ventures

5

(9)

Debt instruments at fair value through other comprehensive income:



Net valuation (losses)/gains taken to equity

(32)

157

Reclassified to income statement

48

60

Net impact of expected credit losses

1

(34)

Cash flow hedges:



Net movements in cash flow hedge reserve

(108)

283

Taxation relating to components of other comprehensive income

14

(12)

Other comprehensive (loss)/income for the year, net of taxation

(772)

709

Total comprehensive income for the period

623

2,053




Total comprehensive income attributable to:



Non-controlling interests

(14)

(13)

Parent company shareholders

637

2,066

Total comprehensive income for the period

623

2,053

1   Includes $76 million reversal of deferred tax liability partly offset by $13 million capital gain tax on sale of equity investment and $46 million tax credit from own credit adjustment on financial liabilities at fair value through profit or loss

Page 38

 



 

Financial statements continued

Condensed consolidated interim balance sheet

As at 31 March 2024


31.03.24
$million

31.12.23
$million

Assets



Cash and balances at central banks

61,927

69,905

Financial assets held at fair value through profit or loss

162,159

147,222

Derivative financial instruments

46,794

50,434

Loans and advances to banks

39,698

44,977

Loans and advances to customers

283,403

286,975

Investment securities

161,268

161,255

Other assets

42,709

47,594

Current tax assets

510

484

Prepayments and accrued income

3,104

3,033

Interests in associates and joint ventures

969

966

Goodwill and intangible assets

6,153

6,214

Property, plant and equipment

2,252

2,274

Deferred tax assets

661

702

Assets classified as held for sale

918

809

Total assets

812,525

822,844




Liabilities



Deposits by banks

29,691

28,030

Customer accounts

459,386

469,418

Repurchase agreements and other similar secured borrowing

12,454

12,258

Financial liabilities held at fair value through profit or loss

85,956

83,096

Derivative financial instruments

48,048

56,061

Debt securities in issue

60,997

62,546

Other liabilities

45,238

39,221

Current tax liabilities

1,121

811

Accruals and deferred income

5,893

6,975

Subordinated liabilities and other borrowed funds

10,860

12,036

Deferred tax liabilities

597

770

Provisions for liabilities and charges

414

299

Retirement benefit obligations

163

183

Liabilities included in disposal groups held for sale

868

787

Total liabilities

761,686

772,491




Equity



Share capital and share premium account

6,789

6,815

Other reserves

8,247

9,171

Retained earnings

28,893

28,459

Total parent company shareholders' equity

43,929

44,445

Other equity instruments

6,505

5,512

Total equity excluding non-controlling interests

50,434

49,957

Non-controlling interests

405

396

Total equity

50,839

50,353

Total equity and liabilities

812,525

822,844



 

Page 39

 

Financial statements continued

Condensed consolidated interim statement of changes in equity

For the three months ended 31 March 2024


Ordinary share capital and share premium account
$million

Preference share capital and share premium account
$million

Capital and merger reserves1
$million

Own credit adjust-ment reserve
$million

Fair value through other compre-hensive income reserve - debt
$million

Fair value through other compre-hensive income reserve - equity
$million

Cash flow hedge reserve
$million

Trans-lation reserve
$million

Retained earnings
$million

Parent company share-holders' equity
$million

Other equity instru-ments
$million

Non-controlling interests
$million

Total
$million

As at 01 January 2023

5,436

1,494

17,338

(63)

(1,116)

206

(564)

(7,636)

28,067

43,162

6,504

350

50,016

Profit for the period

-

-

-

-

-

-

-

-

3,469

3,469

-

(7)

3,462

Other comprehensive income/(loss)2

-

-

-

163

426

124

655

(489)

(47)3

832

-

(31)

801

Distributions

-

-

-

-

-

-

-

-

-

-

-

(26)

(26)

Redemption of other equity instruments

-

-

-

-

-

-

-

-

-

-

(1,000)

-

(1,000)

Treasury shares net movement

-

-

-

-

-

-

-

-

(189)

(189)

-

-

(189)

Share option expense, net
of taxation

-

-

-

-

-

-

-

-

173

173

-

-

173

Dividends on ordinary shares

-

-

-

-

-

-

-

-

(568)

(568)

-

-

(568)

Dividends on preference shares and AT1 securities

-

-

-

-

-

-

-

-

(452)

(452)

-

-

(452)

Share buy-back4,5

(115)

-

115

-

-

-

-

-

(2,000)

(2,000)

-

-

(2,000)

Other movements

-

-

-

-

-

-

-

126

66

18

86

1107

136

As at 31 December 2023

5,321

1,494

17,453

100

(690)

330

91

(8,113)

28,459

44,445

5,512

396

50,353

Profit for the period

-

-

-

-

-

-

-

-

1,403

1,403

-

(8)

1,395

Other comprehensive (loss)/income2

-

-

-

(331)

24

(90)13

(95)

(440)

1663,8

(766)

-

(6)

(772)

Other equity instruments issued, net of expenses

-

-

-

-

-

-

-

-

-

-

99312

-

993

Treasury shares net movement

-

-

-

-

-

-

-

-

10

10

-

-

10

Share option expense, net
of taxation

-

-

-

-

-

-

-

-

68

68

-

-

68

Dividends on preference shares and AT1 securities

-

-

-

-

-

-

-

-

(180)

(180)

-

-

(180)

Share buy-back9

(26)

-

26

-

-

-

-

-

(1,000)

(1,000)

-

-

(1,000)

Other movements

-

-

-

-

7

-

-

(25)6

(33)10

(51)

-

2311

(28)

As at 31 March 2024

5,295

1,494

17,479

(231)

(659)

240

(4)

(8,578)

28,893

43,929

6,505

405

50,839

1   Includes capital reserve of $5 million, capital redemption reserve of $363 million and merger reserve of $17,111 million

2   All the amounts are net of tax

3   Comprises actuarial gain, net of taxation on Group defined benefit schemes

4   On 16 February 2023, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $58 million, and the total consideration paid was $1,000 million and the buyback completed on 29 September 2023. The total number of shares purchased was 116,710,492, representing 4.03 per cent of the ordinary shares in issue as at the commencement of the buyback. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account

5   On 28 July 2023, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. Nominal value of share purchases was $57 million, and the total consideration paid was $1,000 million and the buyback completed on 6 November 2023. The total number of shares purchased was 112,982,802, representing 3.90 per cent of the ordinary shares in issue as at the commencement of the buyback. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account

6   Movement related to Translation adjustment and AT1 Securities charges

7   Movements primarily from non-controlling interest pertaining to Mox Bank Limited ($48 million), Trust Bank Singapore Limited ($34 million) and Zodia Custody Limited ($28 million)

8   Includes $147 million gain on sale of equity investment in other comprehensive income reserve transferred to retained earnings partly offset by $13 million capital gain tax

9   On 23rd February 2024, the Group announced the buyback programme for a share buyback of its ordinary shares of $0.50 each. As at Q1 2024 the buyback is ongoing, but the total number of shares purchased was 51,531,300 representing 1.9 per cent of the ordinary shares in issue, the total consideration paid was $437 million, and a further $563 million relating to irrevocable obligation to buyback shares under the buyback programme has been recognised. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account

10     Includes $46 million related to Ghana hyperinflation

11     Movements related to non-controlling interest from Trust Bank Singapore Limited ($23 million)

12     Relates to AT1 issued during the period net of expenses

13     Includes $147 million gain on sale of equity investment transferred to retained earnings partially offset by $76 million reversal of deferred liability

Page 40

 

Financial statements continued

Basis of preparation

This statement covers the results of Standard Chartered PLC together with its subsidiaries and equity accounted interest in associates and jointly controlled entities (the Group) for the three months ended 31 March 2024. The financial information on which this statement is based, and the data set out in the appendix to this statement, are unaudited and have been prepared in accordance with the Group's accounting policies. The Group's material accounting policies are described in the Annual Report 2023, which have been prepared in accordance with UK-adopted international accounting standards and International Financial Reporting Standards (IFRS) as adopted by the European Union (EU IFRS) and in conformity with the requirements of the Companies Act 2006. There are no significant differences between UK-adopted international accounting standards and EU IFRS. The Group's Annual Report 2024 will continue to be prepared in accordance with these frameworks.

The interim financial information does not constitute a full or condensed set of financial statements under IAS 34 'Interim Financial Reporting' as contained in UK-adopted international accounting standards or EU IFRS. The interim financial information has been prepared in accordance with the recognition and measurement principles, but not the disclosure requirements under UK-adopted international accounting standards and EU IFRS.

The information in this interim financial report is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. All references to reported performance/results within this interim financial report means amounts reported under UK-adopted IAS and EU IFRS or in reference to the statutory accounts for the year ended 31 December 2023, unless otherwise stated. This document was approved by the Board on 02 May 2024. The statutory accounts for the year ended 31 December 2023 have been audited and delivered to the Registrar of Companies in England and Wales. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under sections 498(2) and 498(3) of the Companies Act 2006.

Going concern

The Directors assessed the Group's ability to continue as a going concern, including a review of the Group's forecasts, Funding and Liquidity metrics, Capital and Liquidity plans, Legal and regulatory matters, Credit impairment, macroeconomic conditions and geopolitical headwinds, and confirm they are satisfied that the Group has adequate resources to continue in business for a period of twelve months from 02 May 2024. For this reason, the Group continues to adopt the going concern basis of accounting for preparing the interim financial information.

 

Page 41


Other supplementary financial information

Average balance sheets and yields

Average assets


3 months ended 31.03.24

Average
non-interest earning balance
$million

Average
interest
earning balance
$million

Interest income
$million

Gross yield
%

Gross yield
total balance
%

Cash and balances at central banks

9,382

63,384

703

4.46

3.89

Gross loans and advances to banks

36,473

42,000

514

4.92

2.63

Gross loans and advances to customers

56,481

288,554

4,154

5.79

4.84

Impairment provisions against loans and advances to banks
and customers

-

(5,529)

-

-

-

Investment securities - Treasury and Other Eligible Bills

11,195

30,157

386

5.15

3.75

Investment securities - Debt Securities

50,527

135,144

1,380

4.11

2.99

Investment securities - Equity Shares

3,780

-

-

-

-

Property, plant and equipment and intangible assets

6,297

-

-

-

-

Prepayments, accrued income and other assets

126,234

-

-

-

-

Investment associates and joint ventures

1,023

-

-

-

-

Total average assets

301,392

553,710

7,137

5.18

3.36

 


3 months ended 31.12.23

Average
non-interest earning balance
$million

Average
interest earning balance
$million

Interest income
$million

Gross yield
%

Gross yield
total balance
%

Cash and balances at central banks

10,582

67,162

766

4.52

3.91

Gross loans and advances to banks

35,375

45,787

584

5.06

2.85

Gross loans and advances to customers

53,984

288,046

4,014

5.53

4.66

Impairment provisions against loans and advances to banks
and customers

-

(5,790)

-

-

-

Investment securities - Treasury and Other Eligible Bills

11,516

27,567

382

5.50

3.88

Investment securities - Debt Securities

36,323

131,238

1,342

4.06

3.18

Investment securities - Equity Shares

3,324

-

-

-

-

Property, plant and equipment and intangible assets

6,181

-

-

-

-

Prepayments, accrued income and other assets

129,698

4,173

(79)

(7.51)

(0.23)

Investment associates and joint ventures

1,122

-

-

-

-

Total average assets

288,105

558,183

7,009

4.98

3.29

 

Page 42


Other supplementary financial information continued

 


3 months ended 31.03.23

Average
non-interest earning balance
$million

Average
interest
earning balance
$million

Interest income
$million

Gross yield
%

Gross yield
total balance
%

Cash and balances at central banks

11,076

58,261

515

3.58

2.99

Gross loans and advances to banks

30,547

41,723

454

4.41

2.53

Gross loans and advances to customers

61,342

312,030

3,739

4.86

4.03

Impairment provisions against loans and advances to banks
and customers

-

(6,086)

-

-

-

Investment securities - Treasury and Other Eligible Bills

6,800

37,808

407

4.37

3.67

Investment securities - Debt Securities

24,612

138,821

1,169

3.42

2.88

Investment securities - Equity Shares

3,329

-

-

-

-

Property, plant and equipment and intangible assets

9,273

-

-

-

-

Prepayments, accrued income and other assets

129,935

-

-

-

-

Investment associates and joint ventures

1,697

-

-

-

-

Total average assets

278,611

582,557

6,284

4.37

2.93

Average liabilities


3 months ended 31.03.24

Average
non-interest bearing balance
$million

Average
interest
bearing balance
$million

Interest expense
$million

Rate paid
%

Rate paid
total balance
%

Deposits by banks

14,597

21,359

248

4.67

2.77

Customer accounts:






Current accounts

39,982

125,691

1,027

3.29

2.49

Savings deposits

-

115,275

619

2.16

2.16

Time deposits

18,512

184,972

2,397

5.21

4.74

Other deposits

37,809

13,505

166

4.94

1.30

Debt securities in issue

11,111

63,809

896

5.65

4.81

Accruals, deferred income and other liabilities

146,203

963

8

3.41

0.02

Subordinated liabilities and other borrowed funds

-

11,587

204

7.08

7.08

Non-controlling interests

392

-

-

-

-

Shareholders' funds

49,335

-

-

-

-


317,941

537,161

5,565

4.17

2.62







Adjustment for trading book funding cost and others



(857)



Total average liabilities and shareholders' funds

317,941

537,161

4,708

3.52

2.21

Page 43

 



 

Other supplementary financial information continued


3 months ended 31.12.23

Average
non-interest bearing balance
$million

Average
interest
bearing balance
$million

Interest expense
$million

Rate paid
%

Rate paid
total balance
%

Deposits by banks

13,112

22,320

199

3.54

2.23

Customer accounts:






Current accounts

39,541

122,797

1,042

3.37

2.55

Savings deposits

-

112,134

576

2.04

2.04

Time deposits

16,584

181,344

2,189

4.79

4.39

Other deposits

36,380

13,311

150

4.47

1.20

Debt securities in issue

13,229

65,337

840

5.10

4.24

Accruals, deferred income and other liabilities

143,058

8,140

(146)

(7.12)

(0.38)

Subordinated liabilities and other borrowed funds

-

12,533

299

9.47

9.47

Non-controlling interests

379

-

-

-

-

Shareholders' funds

46,089

-

-

-

-


308,372

537,916

5,149

3.80

2.41







Adjustment for trading book funding cost and others



(537)



Total average liabilities and shareholders' funds

308,372

537,916

4,612

3.40

2.16

 


3 months ended 31.03.23

Average
non-interest bearing balance
$million

Average
interest
bearing balance
$million

Interest expense
$million

Rate paid
%

Rate paid
total balance
%

Deposits by banks

13,610

25,445

29

0.46

0.30

Customer accounts:






Current accounts

44,618

130,896

906

2.81

2.09

Savings deposits

-

114,478

436

1.54

1.54

Time deposits

13,595

184,692

1,772

3.89

3.62

Other deposits

54,853

4,584

45

3.98

0.31

Debt securities in issue

9,585

65,632

807

4.99

4.35

Accruals, deferred income and other liabilities

135,756

1,035

13

5.09

0.04

Subordinated liabilities and other borrowed funds

-

12,207

270

8.97

8.97

Non-controlling interests

324

-

-

-

-

Shareholders' funds

49,858

-

-

-

-


322,199

538,969

4,278

3.22

2.01







Adjustment for trading book funding cost and others



(334)



Total average liabilities and shareholders' funds

322,199

538,969

3,944

2.97

1.86

Page 44

 



 

Other supplementary financial information continued

Net Interest Margin


Q1'24
$million

Q4'23
$million

Q1'23
$million

Interest income (reported)

7,137

7,009

6,284

Average interest earning assets

553,710

558,183

582,557

Gross yield (%)

5.18

4.98

4.37





Interest expense (Reported)

5,565

5,149

4,278

Adjustment for trading book funding cost and others

(857)

(537)

(334)

Interest expense adjusted for trading book funding cost and others

4,708

4,612

3,944

Average interest-bearing liabilities

537,161

537,916

538,969

Rate paid (%)

3.52

3.40

2.97

Net yield (%)

1.66

1.58

1.40





Net interest income adjusted for trading book funding cost and others

2,429

2,397

2,340

Net interest margin (%)

1.76

1.70

1.63

Page 45

 



 

Other supplementary financial information continued

Important Notice - Forward-looking statements

This document may contain 'forward-looking statements' that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as 'may', 'could', 'will', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek', 'continue' or other words of similar meaning.

By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

Recipients should not place reliance on, and are cautioned about relying on, any forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. The factors that could cause actual results to differ materially from those described in the forward-looking statements include (but are not limited to): changes in global, political, economic, business, competitive; market forces or condition; future exchange and interest rates; changes in environmental, social or physical risks; legislative, regulatory and policy developments; the development of standards and interpretations; the ability of the Group to mitigate the impact of climate change effectively; risks arising out of health crisis and pandemics, changes in tax rates, future business combinations or dispositions; and other factors specific to the Group. Any forward-looking statement contained in this document is based on past or current trends and/or activities of the Group and should not be taken as a representation that such trends or activities will continue in the future.

No statement in this document is intended to be a profit forecast or to imply that the earnings of the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Group. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by any applicable laws or regulations, the Group expressly disclaims any obligation to revise or update any forward-looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise.

Please refer to the Group's 2023 Annual Report for a discussion of certain risks and factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

Financial instruments

Nothing in this document shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other financial instruments, nor shall it constitute a recommendation or advice in respect of any securities or other financial instruments or any other matter.

Caution regarding climate and environment related information

Some of the climate and environment related information in this document is subject to certain limitations, and therefore the reader should treat the information provided, as well as conclusions, projections and assumptions drawn from such information, with caution. The information may be limited due to a number of factors, which include (but are not limited to): a lack of reliable data; a lack of standardisation of data; and future uncertainty. The information includes externally sourced data that may not have been verified. Furthermore, some of the data, models and methodologies used to create the information is subject to adjustment which is beyond our control, and the information is subject to change without notice.

Chinese translation

If there is a dispute between any translation and the English version of this Q1 2024 Results, the English text shall prevail.

Page 46

 

 

 


CONTACT INFORMATION

Global headquarters
Standard Chartered Group
1 Basinghall Avenue

London, EC2V 5DD
United Kingdom

telephone: +44 (0)20 7885 8888
facsimile: +44 (0)20 7885 9999

Shareholder enquiries
ShareCare information

website: sc.com/shareholders
helpline: +44 (0)370 702 0138

ShareGift information
website:
ShareGift.org
helpline: +44 (0)20 7930 3737

Registrar information

UK

Computershare Investor Services PLC

The Pavilions
Bridgwater Road
Bristol, BS99 6ZZ

helpline: +44 (0)370 702 0138

Hong Kong

Computershare Hong Kong Investor Services Limited

17M Floor, Hopewell Centre
183 Queen's Road East

Wan Chai

Hong Kong

website: computershare.com/hk/investors

Chinese translation

Computershare Hong Kong Investor Services Limited

17M Floor, Hopewell Centre
183 Queen's Road East

Wan Chai

Hong Kong

Register for electronic communications
website: investorcentre.co.uk

For further information, please contact:

Manus Costello, Global Head of Investor Relations
+44 (0) 20 7885 0017

LSE Stock code: STAN.LN
HKSE Stock code: 02888

 

Page 47

 

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