Interim Results - Part 2
Standard Chartered PLC
07 August 2002
PART 2
STANDARD CHARTERED PLC - NOTES
1. Segmental information by geographic segment
The following tables set out profit and loss information, average loans and
advances to customers, net interest margin and selected balance sheet
information by geographic segment for the six month periods ended 30 June 2002,
30 June 2001 and 31 December 2001.
6 months ended 30.06.02
Asia Pacific
Hong Other
Kong Singapore Malaysia Asia Pacific
$m $m $m $m
Interest receivable 848 359 164 369
Interest payable (276) (186) (84) (197)
Net interest income 572 173 80 172
Fees and commissions receivable, 127 44 25 67
net
Dealing profits and exchange 35 17 9 41
Other operating income - 1 1 3
Net revenue 734 235 115 283
Costs (296) (97) (73) (195)
Amortisation of goodwill
Total operating expenses (296) (97) (73) (195)
Operating profit before provisions 438 138 42 88
Charge for debts, contingent (231) (17) (10) (34)
liabilities and commitments
Operating profit before taxation 207 121 32 54
Loans and advances to customers - 21,180 7,130 3,734 5,930
average
Net interest margin (%) 3.2 2.4 2.5 2.4
Loans and advances to customers - 21,155 7,775 3,760 6,556
period end
Loans and advances to banks - 4,053 2,644 725 2,771
period end
Total assets employed 40,408 17,845 6,491 16,277
Total risk weighted assets and 20,372 10,641 3,584 8,116
contingents
6 months ended 30.06.02
Americas
Middle UK &
East & Group
Other Head
India S Asia Africa Office Total
$m $m $m $m $m
Interest receivable 298 303 163 759 3,263
Interest payable (189) (148) (58) (583) (1,721)
Net interest income 109 155 105 176 1,542
Fees and commissions 41 54 45 73 476
receivable, net
Dealing profits and exchange 18 29 24 56 229
Other operating income 30 4 2 (3) 38
Net revenue 198 242 176 302 2,285
Costs (103) (92) (111) (209) (1,176)
Amortisation of goodwill (68) (68)
Total operating expenses (103) (92) (111) (277) (1,244)
Operating profit before 95 150 65 25 1,041
provisions
Charge for debts, contingent (19) - 3 (99) (407)
liabilities and commitments
Operating profit before 76 150 68 (74) 634
taxation
Loans and advances to customers 2,055 4,170 994 8,859 54,052
- average
Net interest margin (%) 4.1 4.0 7.6 1.2 3.1
Loans and advances to customers 2,064 4,234 1,102 8,237 54,883
- period end
Loans and advances to banks - 335 1,731 279 7,565 20,103
period end
Total assets employed 7,164 9,612 3,737 43,112 144,646
Total risk weighted assets and 4,094 5,912 1,453 19,477 73,649
contingents
a. Total interest receivable and total interest payable include intra-group
interest of $710 million.
b. Group central expenses have been distributed between segments in proportion
to their direct costs and the benefit of the Group's capital has been
distributed between segments in proportion to their risk weighted assets.
c. Business acquisitions have been made as part of the Group's growth strategy.
These activities are a result of corporate decisions made at the centre and
the amortisation of purchased goodwill is included in the Americas, UK and
Group Head Office segment.
(d) Total assets employed include intra-group items of $26,234
million and balances of $5,595 million which are netted in the
Summarised Consolidated Balance Sheet. Assets held at the centre have
been distributed between geographic segments in proportion to their
total assets employed.
(e) Total risk weighted assets and contingents include $797 million
of balances and other supervisory adjustments which are netted in
calculating capital ratios.
STANDARD CHARTERED PLC - NOTES (continued)
1. Segmental information by geographic segment (continued)
6 months ended 30.06.01
Asia Pacific
Other
Hong Asia
Kong Singapore Malaysia Pacific
$m $m $m $m
Interest receivable 1,280 454 193 434
Interest payable* (753) (309) (105) (278)
Net interest income 527 145 88 156
Fees and commissions receivable, net 142 52 23 61
Dealing profits and 26 21 12 46
exchange
Other operating income 2 - 1 2
Net revenue 697 218 124 265
Costs (330) (99) (61) (200)
Amortisation of goodwill
Total operating expenses (330) (99) (61) (200)
Operating profit before provisions 367 119 63 65
Charge for debts, contingent (102) (23) (55) (27)
liabilities and commitments
Operating profit before taxation 265 96 8 38
Loans and advances to customers - 21,147 6,174 3,538 5,316
average
Net interest margin (%) 3.0 2.0 2.9 2.8
Loans and advances to customers - 21,612 6,171 3,550 5,376
period end
Loans and advances to banks - period 4,082 4,093 1,174 3,292
end
Total assets employed* 40,239 16,112 6,657 14,119
Total risk weighted assets and 20,565 8,786 4,068 6,815
contingents
6 months ended 30.06.01
Americas
Middle UK &
East & Group
Other Head
India S Asia Africa Office Total
$m $m $m $m $m
Interest receivable 279 385 168 1,377 4,570
Interest payable* (181) (256) (70) (1,213) (3,165)
Net interest income 98 129 98 164 1,405
Fees and commissions 39 49 40 71 477
receivable, net
Dealing profits and 23 27 37 57 249
exchange
Other operating income 10 3 2 13 33
Net revenue 170 208 177 305 2,164
Costs (106) (99) (110) (194) (1,199)
Amortisation of goodwill (68) (68)
Total operating expenses (106) (99) (110) (262) (1,267)
Operating profit before 64 109 67 43 897
provisions
Charge for debts, contingent (11) (11) (3) (37) (269)
liabilities and commitments
Operating profit before 53 98 64 6 628
taxation
Loans and advances to customers 1,888 4,181 1,078 9,080 52,402
- average
Net interest margin (%) 4.0 3.8 8.1 1.2 3.0
Loans and advances to customers 1,904 3,992 973 9,349 52,927
- period end
Loans and advances to banks - 255 1,455 225 12,391 26,967
period end
Total assets employed* 6,052 9,129 3,149 40,593 136,050
Total risk weighted assets and 3,648 5,572 1,443 18,353 69,250
contingents
f. Total interest receivable and total interest payable include intra-group
interest of $1,170 million.
g. Group central expenses have been distributed between segments in proportion
to their direct costs and the benefit of the Group's capital has been
distributed between segments in proportion to their risk weighted assets.
h. Business acquisitions have been made as part of the Group's growth strategy.
These activities are a result of corporate decisions made at the centre and
the amortisation of purchased goodwill is included in the Americas, UK and
Group Head Office segment. The restructuring programme and the resolution of
Year 2000 related technology issues have been managed from the centre as
global projects and all expenses are included in the Americas, UK and Group
Head Office segments.
i. Total assets employed include intra-group items of $23,132 million and
balances of $3,081 million which are netted in the Summarised Consolidated
Balance Sheet. Assets held at the centre have been distributed between
geographic segments in proportion to their total assets employed.
j. Total risk weighted assets and contingents include balances of $739 million
which are netted in calculating Capital ratios.
* Comparative restated (see note 15)
STANDARD CHARTERED PLC - NOTES (continued)
1. Segmental information by geographic segment (continued)
6 months ended 31.12.01
Asia Pacific
Hong Other
Kong Singapore Malaysia Asia Pacific
$m $m $m $m
Interest receivable 1,097 459 192 458
Interest payable* (530) (299) (113) (302)
Net interest income 567 160 79 156
Fees and commissions receivable, net 159 43 24 60
Dealing profits and exchange 24 19 8 44
Other operating income (5) - 2 4
Net revenue 745 222 113 264
Costs (349) (106) (70) (204)
Amortisation of goodwill
Total operating expenses (349) (106) (70) (204)
Operating profit before provisions 396 116 43 60
Charge for debts, contingent (155) (28) (75) (59)
liabilities and commitments
Operating profit before taxation 241 88 (32) 1
Loans and advances to customers - 21,319 6,446 3,572 5,725
average
Net interest margin (%) 3.4 1.9 2.5 1.9
Loans and advances to customers - 21,145 6,828 3,705 5,842
period end
Loans and advances to banks - period 1,227 2,315 607 3,184
end
Total assets employed* 39,508 15,086 6,223 14,580
Total risk weighted assets and 19,320 8,933 3,630 7,446
contingents
6 months ended 31.12.01
Americas
Middle UK &
East & Group
India Other Africa Head Total
$m S Asia $m Office
$m $m $m
Interest receivable 293 364 171 1,102 4,136
Interest payable* (192) (212) (64) (929) (2,641)
Net interest income 101 152 107 173 1,495
Fees and commissions receivable, 39 47 46 82 500
net
Dealing profits and exchange 19 28 25 54 221
Other operating income 26 1 - (3) 25
Net revenue 185 228 178 306 2,241
Costs (103) (108) (116) (190) (1,246)
Amortisation of goodwill (72) (72)
Total operating expenses (103) (108) (116) (262) (1,318)
Operating profit before 82 120 62 44 923
provisions
Charge for debts, contingent (16) (28) (10) (91) (462)
liabilities and commitments
Operating profit before taxation 66 92 52 (47) 461
Loans and advances to customers 1,929 4,023 936 9,316 53,266
- average
Net interest margin (%) 4.0 4.3 8.4 0.6 3.1
Loans and advances to customers 1,923 4,117 969 8,476 53,005
- period end
Loans and advances to banks - 398 1,704 325 9,818 19,578
period end
Total assets employed* 5,994 9,604 3,487 41,335 135,817
Total risk weighted assets and 3,590 5,802 1,343 19,778 69,842
contingents
k. Total interest receivable and total interest payable include intra-group
interest of $1,117 million.
l. Group central expenses have been distributed between segments in proportion
to their direct costs and the benefit of the Group's capital has been
distributed between segments in proportion to their risk weighted assets.
m. Business acquisitions have been made as part of the Group's growth strategy.
These activities are a result of corporate decisions made at the centre and
the amortisation of purchased goodwill is included in the Americas, UK and
Group Head Office segment.
n. Total assets employed include intra-group items of $24,724 million and
balances of $3,558 million which are netted in the Summarised Consolidated
Balance Sheet. Assets held at the centre have been distributed between
geographic segments in proportion to their total assets employed.
o. Total risk weighted assets and contingents include balances of $500 million
which are netted in calculating Capital ratios.
* Comparative restated (see note 15)
STANDARD CHARTERED PLC - NOTES (continued)
1. Segmental information by geographic segment (continued)
The following table sets out the structure of Standard Chartered's deposits by
principal geographic region where it operates at 30 June 2002, 30 June 2001 and
31 December 2001.
30.06.02
Asia Pacific
Hong Other
Kong Singapore Malaysia Asia Pacific
$m $m $m $m
Non interest bearing current and 1,383 1,045 699 523
demand accounts
Interest bearing current and demand 10,278 1,633 102 1,540
accounts
Savings deposits 577 451 531 1,901
Time deposits 16,679 8,782 2,812 4,226
Other deposits 5 248 309 693
Total 28,922 12,159 4,453 8,883
Deposits by banks 2,052 2,529 486 1,879
Customer accounts 26,870 9,630 3,967 7,004
28,922 12,159 4,453 8,883
Debt securities in issue 1,098 113 360 524
Total 30,020 12,272 4,813 9,407
30.06.02
Americas
Middle UK &
East & Group Total
India Other Africa Head Deposits
S Asia Office
$m $m $m $m $m
Non interest bearing current 674 1,175 862 572 6,933
and demand accounts
Interest bearing current and 46 675 648 2,332 17,254
demand accounts
Savings deposits 544 1,089 417 198 5,708
Time deposits 3,064 3,201 519 10,988 50,271
Other deposits 3 328 147 1,560 3,293
Total 4,331 6,468 2,593 15,650 83,459
Deposits by banks 1,171 813 120 4,231 13,281
Customer accounts 3,160 5,655 2,473 11,419 70,178
4,331 6,468 2,593 15,650 83,459
Debt securities in issue 81 - 3 1,306 3,485
Total 4,412 6,468 2,596 16,956 86,944
30.06.01
Asia Pacific
Other
Hong Asia
Kong Singapore Malaysia Pacific
$m $m $m $m
Non interest bearing current and 984 814 669 412
demand accounts
Interest bearing current and demand 8,673 1,468 112 1,483
accounts
Savings deposits 880 431 593 917
Time deposits 18,470 8,720 2,741 5,361
Other deposits 4 1 358 507
Total 29,011 11,434 4,473 8,680
Deposits by banks 1,291 2,807 649 2,393
Customer accounts 27,720 8,627 3,824 6,287
29,011 11,434 4,473 8,680
Debt securities in issue 1,793 82 387 441
Total 30,804 11,516 4,860 9,121
30.06.01
Americas
Middle UK &
East & Group Total
Other Head
India S Asia Africa Office Deposits
$m $m $m $m $m
Non interest bearing current 605 868 731 471 5,554
and demand accounts
Interest bearing current and 5 577 535 2,757 15,610
demand accounts
Savings deposits 491 903 353 20 4,588
Time deposits 2,644 3,636 484 11,247 53,303
Other deposits 59 225 35 1,411 2,600
Total 3,804 6,209 2,138 15,906 81,655
Deposits by banks 921 929 97 5,684 14,771
Customer accounts 2,883 5,280 2,041 10,222 66,884
3,804 6,209 2,138 15,906 81,655
Debt securities in issue 84 - - 2,196 4,983
Total 3,888 6,209 2,138 18,102 86,638
STANDARD CHARTERED PLC - NOTES (continued)
1. Segmental information by geographic segment (continued)
31.12.01
Asia Pacific
Hong Other
Kong Singapore Malaysia Asia Pacific
$m $m $m $m
Non interest bearing current and 1,207 901 728 439
demand accounts
Interest bearing current and demand 10,002 1,622 107 1,301
accounts
Savings deposits 582 437 579 1,042
Time deposits 16,687 7,078 2,824 4,565
Other deposits 4 253 303 1,099
Total 28,482 10,291 4,541 8,446
Deposits by banks 1,001 1,028 472 2,051
Customer accounts 27,481 9,263 4,069 6,395
28,482 10,291 4,541 8,446
Debt securities in issue 1,305 81 245 363
Total 29,787 10,372 4,786 8,809
31.12.01
Americas
Middle UK &
East & Group
Other Head Total
India S Asia Africa Office Deposits
$m $m $m $m $m
Non interest bearing current 672 980 714 669 6,310
and demand accounts
Interest bearing current and 5 767 711 2,228 16,743
demand accounts
Savings deposits 518 1,040 372 220 4,790
Time deposits 2,798 3,672 461 9,831 47,916
Other deposits 57 205 190 1,673 3,784
Total 4,050 6,664 2,448 14,621 79,543
Deposits by banks 1,115 1,298 67 4,656 11,688
Customer accounts 2,935 5,366 2,381 9,965 67,855
4,050 6,664 2,448 14,621 79,543
Debt securities in issue 82 - 3 1,627 3,706
Total 4,132 6,664 2,451 16,248 83,249
2. Segmental information by class of business
6 months ended 30.06.02 6 months ended 30.06.01
Consumer Wholesale Consumer Wholesale
Banking Banking Total Banking Banking Total
$m $m $m $m $m $m
Net interest income* 938 604 1,542 819 586 1,405
Other income 277 466 743 259 500 759
Net revenue 1,215 1,070 2,285 1,078 1,086 2,164
Costs (568) (608) (1,176) (614) (585) (1,199)
Amortisation of goodwill (68) (68)
Total operating expenses (568) (608) (1,244) (614) (585) (1,267)
Operating profit before provisions 647 462 1,041 464 501 897
Charge for debts, contingent liabilities (321) (86) (407) (123) (146) (269)
and commitments
Operating profit before taxation 326 376 634 341 355 628
Total assets employed* 41,541 103,105 144,646 39,900 96,150 136,050
Please refer to note 1 (a) - (d) and (f) - (i)
* Comparative restated (see note 15)
STANDARD CHARTERED PLC - NOTES (continued)
2. Segmental information by class of business (continued)
6 months ended 31.12.01
Consumer Wholesale
Banking Banking Total
$m $m $m
Net interest income* 883 612 1,495
Other income 261 485 746
Net revenue 1,144 1,097 2,241
Costs (640) (606) (1,246)
Amortisation of goodwill (72)
Total operating expenses (640) (606) (1,318)
Operating profit before provisions 504 491 923
Charge for debts, contingent liabilities and commitments (207) (255) (462)
Operating profit before taxation 297 236 461
Total assets employed* 44,992 90,825 135,817
Please refer to note 1 (k) - (n)
* Comparative restated (see note 15)
3. Dealing profits and exchange
6 months 6 months 6 months
ended ended ended
30.06.02 30.06.01 31.12.01
$m $m $m
Income from foreign exchange dealing 162 193 181
Profits less losses on dealing securities 22 25 (3)
Other dealing profits and exchange 45 31 43
229 249 221
4. Other operating income
6 months 6 months ended 6 months
ended 30.06.01 ended
30.06.02 31.12.01
$m $m $m
Other operating income includes:
Profits less losses on disposal of investment securities 19 7 16
Dividend income 4 2 1
STANDARD CHARTERED PLC - NOTES (continued)
5. Taxation
6 months 6 months 6 months
ended ended ended
30.06.02 30.06.01 31.12.01
$m $m $m
United Kingdom corporation tax at 30% (30.06.01: 30%; 31.12.01: 30%) 133 109 102
Relief for overseas tax (90) (75) (104)
43 34 (2)
Overseas tax 158 184 162
201 218 160
Effective tax rate 31.7% 34.7% 34.7%
6. Dividends on preference shares
6 months 6 months 6 months
ended ended ended
30.06.02 30.06.01 31.12.01
$m $m $m
Non-cumulative irredeemable preference shares:
73/2% preference shares of £1 each 6 5 6
81/4% preference shares of £1 each 6 6 6
Non-cumulative redeemable preference shares:
8.9% preference shares of $5 each 44 1 44
56 12 56
7. Dividends on ordinary shares
6 months ended 6 months ended 6 months ended
30.06.02 30.06.01 31.12.01
Cents per Cents per Cents per
share $m share $m share $m
Interim 14.10 160 12.82 145 - -
Final - - - - 29.10 329
14.10 160 12.82 145 29.10 329
The 2002 interim dividend of 14.1 cents per share will be paid in sterling,
unless shareholders elect to be paid in US dollars, on 15 October 2002 to
shareholders on the register of members at the close of business on 16 August
2002. It is intended that shareholders will be able to elect to receive shares
credited as fully paid instead of all or part of the interim dividend. Details
will be sent to shareholders on or around 29 August 2002.
STANDARD CHARTERED PLC - NOTES (continued)
8. Earnings per ordinary share
6 months ended 30.06.02
Average Per share amount Cents
number of
Profit shares
$m ('000)
Basic EPS
Profit attributable to ordinary shareholders 360 1,131,734 31.8
Effect of dilutive potential ordinary shares:
Convertible bonds 8 34,488
Options - 2,978
Diluted EPS 368 1,169,200 31.5
6 months ended 30.06.01 6 months ended 31.12.01
Average Per share Average Per share
number of amount Cents number of amount
Profit shares Profit shares Cents
$m ('000) $m ('000)
Basic EPS
Profit attributable to 392 1,127,853 34.8 239 1,128,961 21.2
ordinary shareholders
Effect of dilutive potential
ordinary shares:
Convertible bonds 8 34,488 8 34,488
Options - 5,907 - 3,049
Diluted EPS 400 1,168,248 34.2 247 1,166,498 21.2
The Group measures earnings per share on a normalised basis. This differs from
earnings defined in Financial Reporting Standard 14. The table below provides a
reconciliation.
6 months 6 months 6 months
ended ended ended
30.06.02 30.06.01 31.12.01
$m $m $m
Profit attributable to shareholders after preference dividends 360 392 239
Amortisation of goodwill 68 68 72
Profits less losses on disposal of investment securities (19) (7) (16)
Normalised earnings 409 453 295
Normalised earnings per ordinary share 36.1 40.2 26.1
9. Provisions for bad and doubtful debts
6 months ended 6 months ended 6 months ended
30.06.02 30.06.01 31.12.01
Specific General Specific General Specific General
$m $m $m $m $m $m
Provisions held at beginning of period 951 468 1,146 468 1,023 467
Exchange translation differences (6) - (14) (1) 2 1
Amounts written off (372) - (249) - (384) -
Amounts written down (55) - (155) - (213)
Recoveries of amounts previously written off 26 - 30 - 21 -
Other - - (4) 39 -
New provisions 550 - 404 - 590 -
Recoveries/provisions no longer required (144) - (135) - (127) -
Net charge against profit 406 - 269 - 463 -
Provisions held at end of period 950 468 1,023 467 951 468
Corporate loans and advances to customers against which provisions have been
outstanding for 2 years or more are written down to their net realisable value.
STANDARD CHARTERED PLC - NOTES (continued)
10. Non-performing loans and advances
30.06.02
SCNB Other $m Total
$m $m
Loans and advances on which interest is suspended 767 2,308 3,075
Specific provisions for bad and doubtful debts (68) (882) (950)
Interest in suspense (4) (217) (221)
695 1,209 1,904
30.06.01 31.12.01
SCNB Other Total SCNB Other Total
$m $m $m $m $m $m
$m
Loans and advances on which interest is 759 2,480 3,239 753 2,440 3,193
suspended
Specific provisions for bad and doubtful (79) (944) (1,023) (69) (882) (951)
debts
Interest in suspense - (285) (285) - (225) (225)
680 1,251 1,931 684 1,333 2,017
The Group acquired Standard Chartered Nakornthon Bank (SCNB) (formerly
Nakornthon Bank) in September 1999. Under the terms of the acquisition,
non-performing loans (NPLs) of THB 35.24 billion ($849 million) are subject to a
Loan Management Agreement (LMA) with the Financial Institutions Development Fund
(FIDF), a Thai Government agency. Under the LMA, the FIDF has guaranteed the
recovery of a principal amount of the NPLs of THB 23 billion ($554 million). The
LMA also provides, inter alia, for loss sharing arrangements whereby the FIDF
will bear up to 85 per cent of losses in excess of the guaranteed amount. The
carrying cost of the NPLs is reimbursable by the FIDF to SCNB, every half year,
for a period of five years from the date of acquisition.
Excluding the SCNB non-performing loan portfolio, specific provisions and
interest in suspense together cover 48 per cent (30 June 2001: 50 per cent; 31
December 2001: 45 per cent) of total non-performing lending to customers. If
lending and provisions are adjusted for the cumulative amounts written off of
$1,645 million (30 June 2001: $1,362 million; 31 December 2001: $1,574 million),
the effective cover is 69 per cent (30 June 2001: 68 per cent; 31 December 2001:
67 per cent).
11. Called up share capital
30.06.02 30.06.01 31.12.01
$m $m $m
Equity capital
Ordinary shares of $0.50 each 567 564 566
Non-equity capital
Non-cumulative irredeemable preference shares:
73/2% preference shares of £1 each 152 141 145
81/4% preference shares of £1 each 152 141 145
8.9% preference shares of $5 each 5 5 5
876 851 861
STANDARD CHARTERED PLC - NOTES (continued)
12. Shareholders' funds
Share Premises Profit Total
Share premium Capital revaluation and loss shareholders'
capital account reserve reserve account funds
$m $m $m $m $m $m
At 1 January 2002 previously published 861 2,761 5 45 3,710 7,382
Prior year adjustment (note 15) - - - 16 140 156
At 1 January 2002 restated 861 2,761 5 61 3,850 7,538
Exchange translation differences 14 - - (1) (52) (39)
Shares issued, net of expenses 1 11 - - 32 44
Retained profit - - - - 200 200
Capitalised on exercise of share options - 2 - - (2) -
At 30 June 2002 876 2,774 5 60 4,028 7,743
Equity interests 6,470
Non-equity interests 1,273
At 30 June 2002 7,743
13. Net interest margin and interest spread
6 months 6 months 6 months
ended ended ended
30.06.02 30.06.01 31.12.01
% % %
Net interest margin 3.1 3.0 3.1
Interest spread 2.9 2.5 2.8
$m $m $m
Average interest earning assets 98,077 94,928 96,843
Average interest bearing liabilities 86,491 85,105 85,971
STANDARD CHARTERED PLC - NOTES (continued)
14. Consolidated cash flow statement
Reconciliation between operating profit before taxation and net cash inflow
from operating activities:
6 months 6 months 6 months
ended ended ended
30.06.02 30.06.01* 31.12.01*
$m $m $m
Operating profit 634 628 461
Items not involving cash flow:
Amortisation of goodwill 68 68 72
Depreciation and amortisation of premises and equipment 89 84 100
Loss on disposal of tangible fixed assets 1 - 1
Gain on disposal of invested securities (19) (7) (16)
Amortisation of investments (16) (3) (8)
Charge for bad and doubtful debts and contingent liabilities 407 269 462
Debts written off, net of recoveries (401) (374) (576)
Decrease in accruals and deferred income (149) (52) (14)
Decrease in prepayments and accrued income 109 176 60
Adjustments for items shown separately:
Interest paid on subordinated loan capital 208 164 157
Net cash inflow from trading activities 931 953 699
Net increase in cheques in the course of collection (2) (41) (30)
Net (increase)/decrease in treasury bills and other eligible bills (47) (19) 20
Net (increase)/decrease in loans and advances to banks and customers (2,063) (6,942) 8,224
Net increase/(decrease) in deposits from banks, customer accounts and debt 3,043 7,082 (3,277)
securities in issue
Net increase in dealing securities (615) (409) (197)
Net decrease/(increase) in mark-to-market adjustment 128 342 (279)
Net (decrease)/increase in other accounts (415) 292 (305)
Net cash inflow from operating activities 960 1,258 4,855
Analysis of changes in cash
Balance at beginning of period 3,549 4,278 2,695
Exchange translation differences 81 (138) 17
Net cash (outflow)/inflow (580) (1,445) 837
Balance at end of period 3,050 2,695 3,549
* Comparative restated (see note 15)
STANDARD CHARTERED PLC - NOTES (continued)
15. Change in accounting policies.
Financial Reporting Standard 19 - Deferred Tax ('FRS 19') is effective for
accounting periods ending on or after 23 January 2002, and the Group adopted
FRS19 in the current period.
It specifies the provisions that are required for deferred tax, which are on a
different basis to its predecessor, Statement of Standard Accounting Practice
15.
The adjustments have no effect on current or prior periods tax charge but affect
the Deferred Tax balances, and Reserves. The brought forward balances at 1
January 2001 have been restated as follows: the Deferred Tax Asset balance is
increased by $156 million, the Profit and Loss Reserves balance is increased by
$140 million and the Premises Revaluation Reserve is increased by $16 million.
In February 2002, the Urgent Issues Task Force issued Abstract 33 (UITF 33) -
'Obligations in Capital Instruments'. This reviewed the classification of
instruments that have the characteristics of both liabilities and shareholders'
funds and provided further guidance on the accounting treatment of these issues.
In 2001, the £300 million 8.103 per cent Step-up Callable Perpetual Trust
Preferred Securities and the Eur500 million 8.16 per cent non-cumulative Trust
Preferred Securities were treated as minority interests (non-equity) in the
consolidated accounts of Standard Chartered PLC, in accordance with Financial
Reporting Standard 4 - Capital Instruments.
As a result of complying with UITF 33 the instruments have been reclassified
from minority interests (non-equity) to liabilities. The restatement of
principal balances for the six months ended 30 June 2002, 30 June 2001 and 31
December 2001 are $951 million, $845 million and $878 million respectively. The
associated minority interest payable reclassified to interest payable are $36
million, $23 million and $36 million for the six months ended 30 June 2002, 30
June 2001 and 31 December 2001 respectively.
Comparative figures for the six months ended 30 June 2001 and 31 December 2001
are restated to reflect these changes to accounting policy.
Independent review report by KPMG Audit Plc to Standard Chartered PLC
Introduction
We have been instructed by the company to review the financial information set
out on pages 30 to 45 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where they
are to be changed in the next annual accounts, in which case any changes and the
reasons for them are to be disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/
4: Review of interim financial information issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making
enquiries of Group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review is substantially less
in scope than an audit performed in accordance with Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly, we do
not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2002.
KPMG Audit Plc
Chartered Accountants 7 August 2002
The financial information included herein has been derived from the audited and
unaudited information contained in the Group's Report and Accounts for the year
ended 31 December 2001. Statutory accounts for 2001 have been delivered to the
Registrar of Companies. The auditors have reported on these accounts; their
report was unqualified and did not contain a statement under Section 237(2)
(accounting records or returns inadequate or accounts not agreeing with records
and returns) or 237(3) (failure to obtain necessary information and explanation)
of the Companies Act 1985.
Financial Calendar
Ex-dividend date 14 August 2002
Record date 16 August 2002
Payment date - interim dividend on ordinary shares 15 October 2002
Copies of this statement are available from Investor Relations, Standard
Chartered PLC, 1 Aldermanbury Square, London, EC2V 7SB or from our website on
www.standardchartered.com/investor
For further information please contact:
Steve Seagrove, Group Head of Corporate Affairs
(020) 7280 7164
Paul Marriage, Head of Media Relations
(020) 7280 7163
Benjamin Hung, Head of Investor Relations
(020) 7280 7245
The following information is available on our website
www.standardchartered.com/investor
• A pre recorded webcast of the interim results analyst presentation
(available 9:30am BST )
• Live Webcast and Q/A session of analyst presentation in London (available
1:00pm BST)
• An interview with Mervyn Davies (Group Chief Executive) and Peter Sands
(Group Finance Director)
• Slides for the Group's presentations (available 9:30am BST)
Images of Standard Chartered and the new logo are available for the media at
www.newscast.co.uk
Information regarding the Group's commitment to corporate and social
responsibility is available at www.standardchartered.com/ourbeliefs.
This information is provided by RNS
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