Standard Chartered : Re-presentation of new organisation structure datapack (02 April 2021, PDF)

Table of Contents

1. Statement of results
2. Summary of financial performance
3. Operating income by product
4. Profit before tax by segment and region
5. Adjusted net interest income and margin
6. Credit risk summary
7. Restructuring and other items
8. Balance sheet and liquidity
9. Risk-weightedassets

1. Capital base and ratios
2. Corporate, Commercial & Institutional Banking
3. Consumer, Private, Business Banking
4. Central & other items (segment)
5. Asia
6. Africa & Middle East
7. Europe & Americas
8. Central & other items (region)
9. Performance by key market

Statement of results

	3 months	3 months	3 months	3 months	3 months	3 months	3 months	3 months
	ended	ended	ended	ended	ended	ended	ended	ended
	31.03.19	30.06.19	30.09.19	31.12.19	31.03.20	30.06.20	30.09.20	31.12.20
	$m	$m	$m	$m	$m	$m	$m	$m
Underlying performance
Operating income	3,813	3,883	3,978	3,597	4,327	3,720	3,519	3,199
Operating expenses (including UK bank levy)	(2,415)	(2,554)	(2,501)	(2,939)	(2,358)	(2,355)	(2,480)	(2,949)
Credit impairment	(78)	(176)	(279)	(373)	(956)	(611)	(353)	(374)
Other impairment	(2)	(19)	(5)	(12)	154	(42)	(15)	(82)
Profit from associates and joint ventures	66	91	45	52	55	21	74	14
Profit/(loss) before taxation	1,384	1,225	1,238	325	1,222	733	745	(192)
Profit/(loss) attributable to ordinary shareholders1	917	706	857	(14)	810	328	428	(425)
Return on ordinary shareholders' tangible equity (%)	9.6	7.3	8.9	(0.1)	8.6	3.5	4.4	(4.3)
Cost to income ratio (%) (excluding UK bank levy)	63.3	65.8	62.9	72.1	54.5	63.3	70.5	81.8
Statutory performance
Operating income	3,918	3,912	3,959	3,628	4,335	3,764	3,506	3,149
Operating expenses	(2,656)	(2,642)	(2,567)	(3,068)	(2,368)	(2,380)	(2,515)	(3,117)
Credit impairment	(78)	(176)	(280)	(374)	(962)	(614)	(358)	(391)
Goodwill impairment	-	-	-	(27)	(258)	-	(231)	-
Other impairment	(20)	(24)	(60)	(32)	92	(57)	(33)	(100)
Profit from associates and joint ventures	78	102	53	67	47	28	66	10
Profit/(loss) before taxation	1,242	1,172	1,105	194	886	741	435	(449)
Taxation	(424)	(494)	(333)	(122)	(369)	(192)	(274)	(27)
Profit/(loss) for the period	818	678	772	72	517	549	161	(476)
Profit/(loss) attributable to parent company shareholders	808	669	761	65	510	538	154	(478)
Profit/(loss) attributable to ordinary shareholders1	774	482	725	(126)	477	339	123	(610)
Return on ordinary shareholders' tangible equity (%)	8.1	5.0	7.5	(1.3)	5.1	3.6	1.3	(6.2)
Cost to income ratio (%) (including UK bank levy)	67.8	67.5	64.8	84.6	54.6	63.2	71.7	99.0
Balance sheet and capital
Total assets	708,874	712,504	734,800	720,398	764,916	741,585	754,429	789,050
Total equity	51,101	50,439	50,696	50,661	50,004	49,897	50,570	50,729
Average tangible equity attributable to ordinary shareholders	38,898	38,845	38,379	38,174	37,927	38,169	38,934	39,330
Loans and advances to customers	265,105	263,595	269,703	268,523	271,234	276,313	281,380	281,699
Customer accounts	377,974	401,597	387,857	405,357	422,192	421,153	417,517	439,339
Risk-weighted assets	268,206	270,739	268,668	264,090	272,653	262,552	266,664	268,834
Total capital	55,862	54,957	54,940	55,965	53,458	56,468	57,051	57,048
1 Following a reorganisation, there has been an integration	20.8	20.3	20.4	21.2	19.6	21.5	21.4	21.2
Common Equity Tier 1	37,184	36,511	36,386	36,513	36,467	37,625	38,449	38,779
Common Equity Tier 1 ratio (%)	13.9	13.5	13.5	13.8	13.4	14.3	14.4	14.4
Net Interest Margin (%) (adjusted)	1.66	1.67	1.61	1.54	1.52	1.28	1.23	1.24
Advances-to-deposits ratio (%)2	66.5	63.7	65.6	64.2	61.9	62.7	63.8	61.1
Liquidity coverage ratio (%)	153	139	133	144	142	149	142	143
UK leverage ratio (%)	5.4	5.3	5.1	5.2	4.9	5.2	5.2	5.2
Information per ordinary share	Cents	Cents	Cents	Cents	Cents	Cents	Cents	Cents
Earnings per share - underlying3	27.7	21.4	26.6	(0.4)	25.4	10.4	13.6	(13.5)
- statutory3	23.4	14.6	22.5	(3.9)	15.0	10.8	3.9	(19.4)
Net asset value per share4	1,339	1,339	1,358	1,358	1,357	1,384	1,405	1,409
Tangible net asset value per share4	1,185	1,182	1,199	1,192	1,201	1,224	1,249	1,249
Number of ordinary shares at period end (m)	3,310	3,255	3,195	3,191	3,147	3,148	3,149	3,150

12 months	12 months
ended	ended	Change1,6
31.12.19	31.12.20
$m	$m	%
15,271	14,765	(3)
(10,409)	(10,142)	3
(906)	(2,294)	(153)
(38)	15	139
254	164	(35)
4,172	2,508	(40)
2,466	1,141	(54)
6.4	3.0	(340)bps
65.9	66.4	50bps
15,417	14,754	(4)
(10,933)	(10,380)	5
(908)	(2,325)	(156)
(27)	(489)	nm
(136)	(98)	28
300	151	(50)
3,713	1,613	(57)
(1,373)	(862)	37
2,340	751	(68)
2,303	724	(69)
1,855	329	(82)
4.8	0.9	(390)bps
70.9	70.4	(50)bps
720,398	789,050	10
50,661	50,729	-
38,574	38,590	-
268,523	281,699	5
405,357	439,339	8
264,090	268,834	2
55,965	57,048	2
21.2	21.2	(0)bps
36,513	38,779	6
13.8	14.4	60bps
1.62	1.31	(31)bps
64.2	61.1	(3.1)
144	143	(1)
5.2	5.2	(0)bps
Cents	Cents
75.7	36.1	(39.6)
57.0	10.4	(46.6)
1,358	1,409	51
1,192	1,249	57
3,191	3,150	(1)

1. Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease). Change is percentage points difference between two points rather than percentage change for total capital (%), common equity tier 1 ratio (%), net interest margin (%), advances-to-deposits ratio (%), liquidity coverage ratio (%), UK leverage ratio (%). 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/(loss) 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 includes customer accounts held at fair value through profit or loss
4. Represents the underlying or statutory earnings divided by the basic weighted average number of shares
5. Calculated on period end net asset value, tangible net asset value and number of shares
6. Not meaningful

Summary of financial performance

	1Q'19	2Q'19	3Q'19	4Q'19	1Q'20	2Q'20	3Q'20	4Q'20
	$m	$m	$m	$m	$m	$m	$m	$m
Net interest income	1,920	1,942	1,937	1,899	1,842	1,660	1,620	1,760
Other income	1,893	1,941	2,041	1,698	2,485	2,060	1,899	1,439
Underlying operating income	3,813	3,883	3,978	3,597	4,327	3,720	3,519	3,199
Other operating expenses	(2,415)	(2,554)	(2,501)	(2,592)	(2,358)	(2,355)	(2,480)	(2,618)
UK bank levy	-	-	-	(347)	-	-	-	(331)
Underlying operating expenses	(2,415)	(2,554)	(2,501)	(2,939)	(2,358)	(2,355)	(2,480)	(2,949)
Underlying profit before impairment and
taxation	1,398	1,329	1,477	658	1,969	1,365	1,039	250
Credit impairment	(78)	(176)	(279)	(373)	(956)	(611)	(353)	(374)
Other impairment	(2)	(19)	(5)	(12)	154	(42)	(15)	(82)
Profit from associates and joint ventures	66	91	45	52	55	21	74	14
Underlying profit/(loss) before taxation	1,384	1,225	1,238	325	1,222	733	745	(192)
Restructuring	32	(46)	(123)	(117)	(92)	2	(44)	(248)
Goodwill Impairment	-	-	-	(27)	(258)	-	(231)	-
Other items	(174)	(7)	(10)	13	14	6	(35)	(9)
Statutory profit/(loss) before taxation	1,242	1,172	1,105	194	886	741	435	(449)
Taxation	(424)	(494)	(333)	(122)	(369)	(192)	(274)	(27)
Profit/(loss) for the period	818	678	772	72	517	549	161	(476)
Net interest margin (%)1	1.66	1.67	1.61	1.54	1.52	1.28	1.23	1.24
Underlying return on tangible equity (%)1	9.6	7.3	8.9	(0.1)	8.6	3.5	4.4	(4.3)
Underlying earnings per share (cents)	27.7	21.4	26.6	(0.4)	25.4	10.4	13.6	(13.5)
Statutory return on tangible equity (%)1	8.1	5.0	7.5	(1.3)	5.1	3.6	1.3	(6.2)
Statutory earnings/(loss) per share (cents)	23.4	14.6	22.5	(3.9)	15.0	10.8	3.9	(19.4)

1. Change is the basis points (bps) difference between the two periods rather than the percentage change
2. Not meaningful

FY'19	FY'20	Change2
$m	$m	%
7,698	6,882	(11)
7,573	7,883	4
15,271	14,765	(3)
(10,062)	(9,811)	2
(347)	(331)	5
(10,409)	(10,142)	3
4,862	4,623	(5)
(906)	(2,294)	(153)
(38)	15	139
254	164	(35)
4,172	2,508	(40)
(254)	(382)	(50)
(27)	(489)	nm
(178)	(24)	87
3,713	1,613	(57)
(1,373)	(862)	37
2,340	751	(68)
1.62	1.31	(31)
6.4	3.0	(340)
75.7	36.1	(52)
4.8	0.9	(390)
57.0	10.4	(82)

Operating income by product

	1Q'19	2Q'19	3Q'19	4Q'19	1Q'20	2Q'20	3Q'20	4Q'20
	$m	$m	$m	$m	$m	$m	$m	$m
Transaction Banking	877	901	887	834	800	721	665	652
Trade	277	282	282	259	260	230	255	249
Cash Management	600	619	605	575	540	491	410	403
Financial Markets1	1,085	1,092	1,147	1,038	1,546	1,236	1,189	963
Macro Trading2	566	482	463	458	831	760	522	441
Credit Markets3	381	374	427	376	267	476	464	414
Credit Trading	92	83	110	83	-25	181	129	119
Financing Solutions and Issuance	289	291	317	293	292	295	335	295
Structured Finance4	99	106	96	160	92	88	101	101
Financing and Security Services2,3,6	92	119	147	116	51	113	124	76
DVA6	-53	11	14	-72	305	-201	-22	-69
Lending and Portfolio Management1,5	195	211	212	207	205	235	226	218
Wealth Management	465	511	488	415	530	434	568	436
Retail Products	951	976	975	960	946	913	859	848
CCPL and other unsecured lending	305	320	315	311	304	295	309	303
Deposits	494	501	510	484	472	413	301	271
Mortgage and Auto	129	129	123	130	136	169	211	234
Other Retail Products	23	26	27	35	34	36	38	40
Treasury	308	251	335	196	325	178	40	92
Other	-68	-59	-66	-53	-25	3	-28	-10
Total underlying operating income	3,813	3,883	3,978	3,597	4,327	3,720	3,519	3,199

FY'19	FY'20	Change
$m	$m	%
3,499	2,838	(19)
1,100	994	(10)
2,399	1,844	(23)
4,362	4,934	13
1,969	2,554	30
1,558	1,621	4
368	404	10
1,190	1,217	2
461	382	(17)
474	364	(23)
(100)	13	113
825	884	7
1,879	1,968	5
3,862	3,566	(8)
1,251	1,211	(3)
1,989	1,457	(27)
511	750	47
111	148	33
1,090	635	(42)
(246)	(60)	76
15,271	14,765	(3)

1. Following a reorganisation, there has been a reclassification of balances relating to Corporate Finance, Financial Markets and Lending and Portfolio Management including prior period numbers. There is no change in the total income
2. Macro Trading now incorporates FX, Rates and Commodities. FY'20 published results included $16m (FY'19: $6m) of income within Rates which is now reported within Financing and Security Services and $12m (FY'19: $14m) of income in Commodities now reported in Credit Markets
3. Credit Markets includes: Credit Trading, Capital Structuring and Distribution Group (CSDG), Project Export Finance, event driven financing, Leveraged Solutions, Bond / Loan Syndication and bespoke financing. FY'20 published results included $3m (FY'19: $5m) of income within Credit Trading now reported in Financing and Security Services
4. Structured Finance includes financing and leasing services to the transportation sector
5. Lending and Portfolio Management includes M&A Advisory income previously reported as part of Corporate Finance
6. All other products within Financial Markets except DVA are combined to form Financing and Security Services

Profit before tax by client segment and geographic region

	1Q'19	2Q'19	3Q'19	4Q'19	1Q'20	2Q'20	3Q'20	4Q'20
	$m	$m	$m	$m	$m	$m	$m	$m
Corporate, Commercial & Institutional Banking1	867	767	705	417	758	556	544	197
Consumer Private & Business Banking1	362	362	297	166	270	112	274	(7)
Central & other items (segment)	155	96	236	(258)	194	65	(73)	(382)
Underlying profit/(loss) before taxation	1,384	1,225	1,238	325	1,222	733	745	(192)
Asia1	1,046	1,043	852	516	1,017	573	821	403
Africa & Middle East	279	162	147	96	47	43	11	(88)
Europe & Americas	(32)	45	62	82	101	255	37	(7)
Central & other items (region)	91	(25)	177	(369)	57	(138)	(124)	(500)
Underlying profit/(loss) before taxation	1,384	1,225	1,238	325	1,222	733	745	(192)

1. Following a reorganisation, there has been a integration of segments and regions (Corporate & Institutional Banking and Commercial Banking to Corporate, Commercial & Institutional Banking; Private Banking and Retail Banking to Consumer, Private and Business Banking; Greater China & North Asia and ASEAN & South Asia to Asia) including prior period numbers
2. Not meaningful

FY'19	FY'20	Change2
$m	$m	%
2,756	2,055	(25)
1,187	649	(45)
229	(196)	(186)
4,172	2,508	(40)
3,457	2,814	(19)
684	13	(98)
157	386	146
(126)	(705)	nm
4,172	2,508	(40)