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
|
31.12.23
$million
|
Change¹
%
|
31.03.23
$million
|
Change¹
%
|
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
|
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)
|
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
|
Corporate & Investment
Banking
%
|
Wealth &
Retail Banking
%
|
Ventures
%
|
Central &
other items
%
|
Total
%
|
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)
|
2,632
|
|
|
|
|
|
2,632
|
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
|
170
|
6
|
-
|
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
|
1
|
51
|
170
|
6
|
-
|
227
|
-
|
-
|
- More than 30 days past due
|
7
|
15
|
364
|
12
|
-
|
391
|
-
|
-
|
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)
|
(24)
|
(3)
|
-
|
(169)
|
(24)
|
(3)
|
- Higher risk
|
(6)
|
(57)
|
(58)
|
(4)
|
-
|
(119)
|
(15)
|
(6)
|
Of which (stage 2):
|
|
|
|
|
|
|
|
|
- Less than 30 days past due
|
-
|
(2)
|
(24)
|
(3)
|
-
|
(29)
|
-
|
-
|
- More than 30 days past due
|
-
|
-
|
(58)
|
(4)
|
-
|
(62)
|
-
|
-
|
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%
|
14.1%
|
50.0%
|
0.0%
|
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%
|
3.9%
|
14.1%
|
50.0%
|
0.0%
|
12.8%
|
0.0%
|
0.0%
|
- More than 30 days past due
|
0.0%
|
0.0%
|
15.9%
|
33.3%
|
0.0%
|
15.9%
|
0.0%
|
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
|
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
|
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
|
3,682
|
24
|
3,658
|
3,413
|
394
|
3,807
|
7,465
|
Aviation1,2
|
1,768
|
899
|
869
|
1,759
|
717
|
2,476
|
3,345
|
Of which : High Carbon Sector
|
1,446
|
860
|
586
|
927
|
569
|
1,496
|
2,082
|
Commodity Traders2
|
8,846
|
355
|
8,491
|
2,445
|
6,288
|
8,733
|
17,224
|
Metals & Mining1,2
|
5,230
|
368
|
4,862
|
6,541
|
2,208
|
8,749
|
13,611
|
Of which : Steel1
|
1,817
|
200
|
1,617
|
1,143
|
366
|
1,509
|
3,126
|
Of which : Coal Mining1
|
20
|
8
|
12
|
50
|
101
|
151
|
163
|
Of which: Aluminium1
|
339
|
12
|
327
|
444
|
97
|
541
|
868
|
Shipping1
|
6,564
|
3,974
|
2,590
|
2,409
|
257
|
2,666
|
5,256
|
Construction2
|
3,095
|
495
|
2,600
|
2,710
|
5,866
|
8,576
|
11,176
|
Of which: Cement1
|
789
|
52
|
737
|
665
|
298
|
963
|
1,700
|
Commercial Real Estate2
|
14,420
|
5,734
|
8,686
|
4,741
|
743
|
5,484
|
14,170
|
Of which : High Carbon Sector
|
7,629
|
2,635
|
4,994
|
1,937
|
439
|
2,376
|
7,370
|
Hotels & Tourism2
|
1,960
|
610
|
1,350
|
1,308
|
313
|
1,621
|
2,971
|
Oil & Gas1,2
|
7,561
|
1,040
|
6,521
|
8,862
|
6,755
|
15,617
|
22,138
|
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
|
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
|
3,564
|
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
|
2,984
|
358
|
54
|
(1,055)
|
2,341
|
-
|
-
|
2,341
|
Asset quality
|
(308)
|
154
|
-
|
334
|
180
|
-
|
-
|
180
|
Risk-weighted assets efficiencies
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Model updates
|
462
|
818
|
-
|
-
|
1,280
|
-
|
-
|
1,280
|
Methodology and policy changes
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,300)
|
(1,300)
|
Acquisitions and disposals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Foreign currency translation
|
(945)
|
(706)
|
-
|
(564)
|
(2,215)
|
-
|
-
|
(2,215)
|
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