Investment Rating - The report assigns a positive outlook on Standard Chartered PLC with a focus on outperforming the market in the next 12-18 months [6][12][15] Core Insights - Standard Chartered's Q3 2024 revenue and profit exceeded Bloomberg consensus expectations, with a year-on-year revenue growth of 11.4% compared to the expected 7.0% [2][6] - Net interest income grew by 9.1% year-on-year, surpassing the consensus forecast of 7.9%, while other income increased by 14.0%, exceeding the expected 6.3% [2][6] - The bank's net interest margin (NIM) rose by 32 basis points to 1.95%, higher than the expected 1.80% [3][7] - Customer loans and advances grew by 2.2% year-on-year, which was below the expected growth of 3.0%, while customer deposits increased by 5.5%, exceeding the forecast of 4.6% [2][6] Summary by Sections Revenue and Profit - The underlying operating income for Q3 2024 was reported at $4.712 billion, reflecting a growth of 7.0% year-on-year, which is above the consensus estimate [5] - The audited pre-tax profit showed a significant increase of 172.0% year-on-year, surpassing the expected growth of 134.1% [2][5] Credit Quality - Credit impairment losses were reported at $178 million, a decrease of 39.5% year-on-year, which was lower than the consensus estimate of $275 million [3][6] - The non-performing loan (NPL) ratio was reported at 2.27%, down 13 basis points from the previous quarter and lower than the expected 2.67% [3][7] Capital Ratios - The Common Equity Tier 1 (CET1) ratio increased by 30 basis points year-on-year to 14.2%, slightly below the consensus forecast of 14.44% [3][7] - The Return on Tangible Equity (RoTE) rose by 3.8 percentage points to 10.8%, exceeding the expected 10.3% [3][6]

Financial Performance - Operating income increased by 6% to $4.8 billion, with a 7% increase on a constant currency basis[7] - Net interest income rose by 6% to $2.6 billion, driven by short-term hedging and optimization in treasury operations[7] - Non-net interest income grew by 9% to $2.2 billion, with wealth management business up 27%[7] - Pre-tax profit before exceptional items reached $1.8 billion, a 15% increase on a constant currency basis[7] - Basic earnings per share rose by 23.5 cents or 31% to 98.5 cents[10] - The pre-tax profit rose by 21% year-on-year to $4 billion, supported by effective cost control[12] - The company reported a strong financial performance for the first half of 2024, with basic operating income increasing by 13% to 99.58 billion HKD[22] - The total revenue for the first half of 2024 was $9,958 million, compared to $8,951 million in the same period of 2023, reflecting a growth of 11.2%[72] Credit and Impairment - Credit impairment charges amounted to $73 million, including $146 million related to wealth management and retail banking[7] - Credit impairment charges increased by 77 million to 249 million, reflecting normalization in wealth management and retail banking[9] - Credit impairment charges totaled HKD 249 million, a 45% increase compared to the previous year, with significant increases in first and second stage impairments[37] - The annualized loan loss rate for the first half of the year was 18 basis points, reflecting a stable credit environment[29] - Credit impairment net reversal amounted to $35 million, due to slight new impairments being offset by reversals from prior provisions and sovereign rating upgrades[57] - The total credit impairment for the first half of 2024 was projected at 40 million, with a recovery of 130 million from previously written-off amounts[179] Capital and Shareholder Returns - Common equity tier 1 capital ratio improved to 14.6%, above the target range of 13-14%[7] - The company announced a $1.5 billion share buyback program, expected to reduce the common equity tier 1 capital ratio by approximately 60 basis points[7] - Interim ordinary share dividend increased by 50% to $0.09 per share, equivalent to $230 million[7] - The board announced an interim ordinary share dividend of HKD 0.09 per share, a 50% increase from the previous dividend, and initiated a new share buyback plan of HKD 1.5 billion following a previous buyback of HKD 1 billion[25] - The tangible shareholder equity return is projected to steadily rise from 10% in 2023 to 12% by 2026[22] Wealth Management - Wealth management business grew by 25%, with new sales netting over 13 billion, and assets under management increased by 12% to 1,350 billion[9] - Wealth management attracted a net inflow of $23 billion in the first half of the year, moving towards a target of $80 billion[16] - Wealth solutions revenue surged by 25%, supported by the launch of new innovative products and a strong increase in new client accounts[30] Deposits and Loans - Customer loans and advances totaled $276 billion, a decrease of $8 billion or 3% since March 31, 2024[7] - Customer deposits increased by $9 billion or 2% to $468 billion since March 31, 2024[7] - Total deposits increased by 8% to HKD 1.816 billion, driven by higher deposit volumes and effective management of transfer rates in a rising interest rate environment[30] - Customer loans and advances decreased by 3% to 275,896 million, down from 283,403 million in the previous quarter[44] Economic Outlook - The global economic growth is projected at 3.1% for the year, with Asia expected to grow by 5.1% in 2024[18] - The company expects net interest income to reach between 100 billion and 102.5 billion in 2024[9] - The expected loan loss rate is normalizing towards the historical range of 30 to 35 basis points[52] Risk Management - The group is actively managing risks associated with high interest rates and inflation, particularly in the real estate sector in China[86] - The group is closely monitoring sovereign risks in emerging markets across Asia, Africa, and the Middle East due to geopolitical and macroeconomic challenges[85] - The company maintains a diversified investment portfolio across products and regions, monitoring geopolitical and macroeconomic risks[109] Digital Banking - The digital bank Mox in Hong Kong has approximately 600,000 customers, with revenue rising nearly 20% in the first half of the year[16] - Digital banking revenue increased by 77% to HKD 62 million, reflecting ongoing investments in digital transformation despite an overall loss in venture capital business[33] Operational Efficiency - The cost-to-income ratio improved by 4 percentage points to 57%, with positive income growth outpacing expense increases[26] - The liquidity coverage ratio improved to 148%, up from 145%[10] - The company aims to save approximately $1.5 billion through the "Efficiency Gain" program over the next three years[14] Employee Engagement and Development - Over 70% of employees have signed up for flexible work arrangements, indicating a focus on productivity, collaboration, and well-being[123] - The company provides online learning platforms to help employees enhance skills and undergo reskilling[121] - The company has an internal talent marketplace allowing employees to participate in projects for diverse experiences and career opportunities[123]

Investment Rating - The report assigns a positive outlook on Standard Chartered PLC (2888 HK) based on its strong performance in Q2 2024, indicating an outperform rating [1]. Core Insights - Standard Chartered's Q2 2024 revenue and profit exceeded expectations, with underlying operating income growing by 5.5% year-on-year, surpassing the consensus forecast of 4.8% [2][5]. - Net interest income increased by 5.1% year-on-year, outperforming the consensus estimate of 3.5%, while other income grew by 6.0%, slightly below the expected 6.5% [2][5]. - The bank's asset quality showed improvement, with credit impairment losses down by 50% year-on-year, significantly better than the expected increase of 78.8% [2][5]. Summary by Sections Revenue and Profit Performance - Basic operating income rose by 5.5% year-on-year, exceeding the consensus forecast of 4.8% [2]. - Net interest income was reported at USD 2,560 million, a 5.1% increase year-on-year, higher than the consensus estimate of USD 2,520 million [4]. - Underlying profit before taxation increased by 14.3% year-on-year, significantly above the consensus forecast of 0.8% [2][4]. Asset Quality - Credit impairment losses were reported at USD 73 million, a decrease of 50% year-on-year, compared to the expected increase of USD 261 million [2][4]. - The non-performing loan (NPL) ratio improved, decreasing to 2.41%, better than the expected 2.73% [2][4]. Capital and Returns - The Common Equity Tier 1 (CET1) ratio increased to 14.6%, up 60 basis points year-on-year, surpassing the consensus estimate of 14.0% [2][4]. - Annualized Return on Equity (ROE) rose to 12.9%, an increase of 80 basis points year-on-year, exceeding the expected 7.38% [2][4].

Financial Performance - Operating income increased by 6% to $4.8 billion, with a 7% increase on a constant currency basis[4] - Net interest income rose by 6% (constant currency basis) to $2.6 billion, driven by short-term hedging maturities and treasury business optimization[4] - Wealth solutions business grew by 27% (constant currency basis), with strong growth in new sales and affluent clients[4] - Global banking business increased by 11% (constant currency basis), driven by higher loan and distribution volumes[4] - Operating income increased by 11% to RMB 10 billion, or 13% on a constant currency basis, excluding significant items[5] - Net interest income rose by 5% to RMB 5 billion on a constant currency basis, while non-net interest income increased by 22% to RMB 5 billion, or 16% excluding two significant items[5] - Wealth management assets under management grew by 12% to RMB 135 billion since December 31, 2023[5] - Global banking business increased by 14% on a constant currency basis, driven by higher loan and distribution volumes[5] - Operating income increased by 11% to HKD 9,958 million compared to HKD 8,951 million in the same period last year[7] - Profit before tax attributable to ordinary shareholders rose by 20% to HKD 3,957 million from HKD 3,306 million[7] - Return on tangible equity for ordinary shareholders improved by 200 basis points to 14.0%[7] - Cost-to-income ratio decreased by 453 basis points to 57.0%[7] - Net interest margin (adjusted) increased by 18 basis points to 1.85%[7] - Total assets grew by 2% to HKD 835,427 million from HKD 822,844 million[7] - Total capital ratio improved by 90 basis points to 22.1%[7] - Basic earnings per share increased by 23.5 cents to 98.5 cents[8] - Net asset value per share rose by HKD 170 to HKD 1,683[8] - Tangible net asset value per share increased by HKD 142 to HKD 1,444[8] - The company achieved a 14% return on tangible equity in the first six months of 2024, with revenue increasing by 13% to $10 billion (on a constant currency basis)[9] - Wealth solutions business revenue reached a record high, increasing by 25% in the first half of 2024[9] - The company's pre-tax profit rose by 21% year-on-year to $4 billion in the first half of 2024[9] - The company's loan-to-deposit ratio stood at 52.6%, with a Common Equity Tier 1 (CET1) ratio of 14.6% in Q2 2024[9] - The company aims to achieve a 5-7% revenue growth over the next three years, targeting an 8-10% growth in cross-border (network) revenue and revenue from financial institution clients and financing activities[9] - The company attracted $23 billion in net new money from affluent clients in the first six months of 2024, progressing towards its three-year target of $80 billion[9] - The company's digital bank Mox in Hong Kong has approximately 600,000 customers, with revenue increasing by nearly 20% in the first half of 2024[9] - The company's "Efficiency and Growth" program aims to save approximately $1.5 billion in costs over the next three years[10] - The company announced a $1.5 billion share buyback program and increased its interim dividend by 50% to 9 cents per share, bringing total shareholder returns to $2.7 billion since the 2023 full-year results[11] - The company's sustainable finance business grew by 18% year-on-year in the first six months of 2024, with a target to achieve over $1 billion in revenue by 2025[12] - The company announced a share buyback of $1.5 billion, reflecting confidence in its performance and strong capital position, bringing total shareholder distributions since the full-year 2023 results to $2.7 billion[14] - Revenue growth guidance for 2024 has been raised, with expected growth exceeding 7%[14] - The company aims to increase its return on tangible equity from 10% in 2023 to 12% by 2026, with further improvements thereafter[14] - Basic net interest income for the first half of 2024 was $4,979 million, a 4% increase year-over-year[15] - Basic non-net interest income for the first half of 2024 was $4,979 million, a 19% increase year-over-year[15] - Basic operating income for the first half of 2024 was $9,958 million, an 11% increase year-over-year[15] - Pre-tax basic profit for the first half of 2024 was $3,957 million, a 20% increase year-over-year[15] - Net interest margin increased to 1.85% in the first half of 2024, up from 1.67% in the same period last year[15] - Basic earnings per share for the first half of 2024 were 98.5 cents, a 31% increase year-over-year[15] - Reported net interest income for the first half of 2024 was $3,175 million, a 20% decrease year-over-year[17] - Basic operating income increased by 13% to 10 billion yuan, or 10% on a constant currency basis, excluding the impact of two significant items[18] - Basic net interest income increased by 4%, or 5% on a constant currency basis, benefiting from short-term hedging rollovers and treasury optimization actions[18] - Basic non-net interest income rose by 19%, or 22% on a constant currency basis, with a 16% increase excluding two significant items[18] - Wealth solutions business revenue increased by 25%, supported by new product launches and strong client acquisition[19] - Global banking revenue increased by 14%, driven by strong lending and financial solutions[19] - Global markets revenue rose by 5%, with credit trading and commodities showing strong double-digit growth[19] - Wealth management assets increased by 12% to 135 billion yuan since December 31, 2023[19] - Transaction services revenue increased by 1% to 3,220 million HKD in H1 2024 compared to 3,192 million HKD in H1 2023[20] - Payment and liquidity revenue grew by 3% to 2,300 million HKD in H1 2024 from 2,242 million HKD in H1 2023[20] - Securities and prime services revenue rose by 8% to 294 million HKD in H1 2024 compared to 272 million HKD in H1 2023[20] - Global banking revenue increased by 12% to 960 million HKD in H1 2024 from 858 million HKD in H1 2023[20] - Wealth solutions revenue surged by 23% to 1,234 million HKD in H1 2024 compared to 1,006 million HKD in H1 2023[20] - Adjusted net interest income grew by 5% to 4,991 million HKD in H1 2024 from 4,770 million HKD in H1 2023[23] - Net interest margin improved by 18 basis points to 1.85% in H1 2024 compared to 1.67% in H1 2023[23] - Corporate and investment banking pre-tax profit increased by 5% in H1 2024, driven by a 5% revenue growth[21] - Wealth management and retail banking pre-tax profit rose by 3% in H1 2024, with wealth solutions revenue up 25% to a record high[21] - Central and other items recorded a loss of 252 million HKD in H1 2024, significantly lower than the 824 million HKD loss in H1 2023[22] - Adjusted net interest income increased by 5% YoY, with the average net interest margin for the first half of the year rising by 18 basis points to 185 basis points[24] - Average interest-bearing assets decreased by 4% QoQ, while the total yield increased by 14 basis points to 532 basis points due to improved asset mix and short-term hedging rollovers[24] - Total operating income for the first half of 2024 reached 9,958 million, with Corporate & Investment Banking contributing 5,991 million and Wealth Management & Retail Banking contributing 3,872 million[35] - Pre-tax profit before impairment and taxes for the first half of 2024 was 4,285 million, with Corporate & Investment Banking contributing 3,070 million and Wealth Management & Retail Banking contributing 1,716 million[35] - Total assets as of the first half of 2024 amounted to 835,427 million, with Corporate & Investment Banking holding 443,442 million and Wealth Management & Retail Banking holding 122,846 million[35] - Customer loans and advances totaled 335,707 million, with Corporate & Investment Banking accounting for 190,298 million and Wealth Management & Retail Banking accounting for 120,277 million[35] - Total liabilities as of the first half of 2024 were 784,100 million, with Corporate & Investment Banking holding 467,875 million and Wealth Management & Retail Banking holding 208,565 million[35] - Risk-weighted assets income return for the first half of 2024 was 8.1%, with Wealth Management & Retail Banking achieving a higher return of 14.8%[35] - Tangible equity basic return for the first half of 2024 was 14.0%, with Wealth Management & Retail Banking achieving a higher return of 27.8%[35] - Cost-to-income ratio for the first half of 2024 was 57.0%, with Corporate & Investment Banking at 48.8% and Wealth Management & Retail Banking at 55.7%[35] - Credit impairment for the first half of 2024 was (249) million, with Wealth Management & Retail Banking recording a higher impairment of (282) million[35] - Total customer deposits as of the first half of 2024 were 532,262 million, with Corporate & Investment Banking holding 315,767 million and Wealth Management & Retail Banking holding 204,154 million[35] - Pre-tax underlying profit increased by 5% (on a constant currency basis) to 3,001 million, driven by higher revenue and reduced credit impairment, partially offset by increased operating expenses and other impairments[36] - Underlying operating income rose by 5% (on a constant currency basis) to 5,991 million, with Global Banking growing 14% due to increased lending and distribution volumes, and Global Markets up 5% driven by strong client flow revenues[36] - Credit impairment net reversal of 35 million, primarily due to minimal new impairments and reversals from previous provisions and sovereign rating upgrades[37] - Customer loans and advances increased by 2% (on a constant currency basis) since December 31, 2023, mainly driven by Global Banking's higher lending and distribution volumes[37] - Risk-weighted assets increased by 7 billion to 149,133 million since December 31, 2023, due to asset growth, market risk-weighted assets, and higher operational risk-weighted assets[37] - Tangible equity basic return stood at 21%, broadly flat compared to the first half of 2023[37] - Trading services revenue increased by 2%, with Payments and Liquidity up 3% due to higher interest rates and transaction volumes, and Securities and Prime Services up 10% driven by custody, funding, and prime brokerage fees[36] - Operating expenses increased by 5% (on a constant currency basis), mainly due to inflation and investments in business growth initiatives, including strategic hiring of project managers[36] - Total assets grew by 11% to 443,442 million, with customer loans and advances up 9% to 190,298 million[36] - Cost-to-income ratio increased to 48.8%, up from 48.4% in the previous year[36] - Wealth management and retail banking operating income increased by 10% YoY to HKD 3,872 million, driven by a 25% growth in wealth solutions business[38] - Wealth solutions business revenue rose by 25% YoY to HKD 1,234 million, supported by new affluent client acquisitions and positive net sales of HKD 13 billion[38] - Deposit income increased by 8% YoY to HKD 1,834 million due to higher deposit volumes and improved margin management in a rising interest rate environment[38] - Credit impairment charges surged by 161% YoY to HKD 282 million, reflecting a normalization after reversals in the previous year[38] - Customer loans and advances decreased by 5% YoY to HKD 120,277 million, primarily due to reduced mortgage volumes in Hong Kong and South Korea[38] - Customer deposits grew by 10% YoY to HKD 204,154 million, reflecting a 6% increase on a constant currency basis[38] - Risk-weighted assets increased by 4% YoY to HKD 52,459 million, with a risk-weighted asset return of 14.8%, up 70 basis points[38] - Tangible equity basic return stood at 27.8%, down 40 basis points YoY[38] - Cost-to-income ratio improved by 2.7 percentage points to 55.7%, driven by operational efficiency[38] - Pre-tax basic profit increased by 3% on a constant currency basis to HKD 1,407 million, supported by revenue growth partially offset by higher operating expenses and credit impairments[39] - Operating income decreased by 10% to HKD 80 million in H1 2024, primarily due to reduced earnings from SC Ventures, while digital banking (Mox & Trust) revenue increased by 77%[40][41] - Pre-tax basic loss increased by HKD 41 million to HKD 199 million, reflecting continued investment in digital transformation[41] - Credit impairments rose by 87% to HKD 43 million, mainly driven by Mox expenses, despite improved delinquency rates[40][41] - Customer loans and advances increased by 8% to HKD 1.11 billion, while customer deposits grew by 45% to HKD 4.05 billion, driven by strong growth in Mox and Trust[40][41] - Total assets increased by 72% to HKD 5.28 billion, with customer loans and advances up by 17% to HKD 1.11 billion[40] - Total liabilities grew by 88% to HKD 4.35 billion, with customer deposits increasing by 95% to HKD 4.05 billion[40] - Risk-weighted assets increased by 11% to HKD 2.13 billion, with a decline in risk-weighted asset income return by 470 basis points to 8.3%[40] - Central and other items segment reported a 103% increase in operating income to HKD 15 million in H1 2024, with treasury business income rising by 102% to HKD 10 million[42] - Pre-tax basic loss in the central and other items segment improved by 69% to HKD 252 million, with restructuring costs of HKD 39 million[42] - Total assets in the central and other items segment decreased by 13% to HKD 263.86 billion, with customer loans and advances down by 29% to HKD 24.02 billion[42] - Pre-tax basic loss was HKD 25.2 million, which is slightly less than one-third of the loss in the previous period, driven by increased revenue and reduced operating expenses and impairments, partially offset by a 35% decrease in income from associates, mainly due to reduced profits from Bohai Bank[43] - Basic operating income increased by HKD 532 million year-on-year to HKD 15 million, with treasury business income rising by HKD 415 million to HKD 10 million, primarily due to foreign exchange revaluation gains from positions in Egypt and short-term hedging rollovers[43] - Other income increased by HKD 117 million to HKD 5 million, mainly due to hyperinflation accounting adjustments related to Ghana[43] - A loss of HKD 174 million related to the sale of the Zimbabwe business, primarily due to foreign exchange losses reclassified from reserves to the income statement, with no impact on tangible equity or capital[43] - Group operating income reached HKD 9,958 million, with Hong Kong contributing HKD 2,303 million, Singapore HKD 1,302 million, and other regions HKD 2,999 million[44] - Group operating expenses totaled HKD 5,673 million, with the highest expenses in Hong Kong at HKD 992 million and other regions at HKD 1,615 million[44] - Pre-tax basic profit/loss for the group was HKD 3,957 million, with Hong Kong contributing HKD 1,206 million and the UK recording a loss of HKD 349 million[44] - Total assets employed by the group amounted to HKD 835,427 million, with customer loans and advances totaling HKD 335,707 million[44] - Total liabilities employed by the group were HKD 784,100 million, with customer deposits accounting for HKD 532,262 million[44] - In the first half of 2024, India's operating income was HKD 657 million, with pre-tax basic profit of HKD 204 million[44] - Total basic operating income for Q2 2024 was 4,806 million, a decrease of 6.7% compared to Q1 2024's 5,152 million[45] - Transaction services revenue in Q2 2024 was 1,605 million, slightly down from 1,615 million in Q1 2024[45] - Payment and liquidity revenue in Q2 2024 was 1,139 million, a decrease of 1.9% from 1,161 million in Q1 2024[45] - Global markets revenue in Q2 2024 was 796 million, a significant drop of 23.5% from 1,041 million in Q1 2024[45] - Wealth solutions revenue in Q2 2024 was 618 million, showing a slight increase from 616 million in Q1 2024[45] - Profit attributable to equity holders in H1 2024 was 2,369 million, a 1% decrease compared to 2,385 million in H1 2023[45] - Basic earnings per share for H1 2024 were 83.3 cents, up 7.

Financial Performance - Tangible equity return reached 10.1%, an increase of 240 basis points[4] - Common equity tier 1 capital ratio stood at 14.1%, 10 basis points above the target range of 13–14%[4] - Total shareholder return was 9.4%, compared to 41.4% in 2022[4] - Operating income increased by 10% to 18.019 billion yuan on a reported basis[5] - Pre-tax profit rose by 24% to 5.093 billion yuan on a reported basis[5] - Earnings per share increased by 22.7 cents to 108.6 cents on a reported basis[5] - Tangible net asset value per ordinary share grew by 12% to 13.93 yuan[4] - The company achieved a tangible equity return of 10.1% in 2023, with a target to reach 12% by 2026[40] - Revenue grew by 13% on a constant currency basis in 2023[40] - The company achieved a 13% increase in full-year revenue to $17.4 billion in 2023, driven by rising interest rates and strong business momentum[48] - The company's pre-tax basic profit rose 27% year-on-year to $5.7 billion in 2023, reaching the highest level in a decade[48] - The company's cross-border network business revenue increased by 31% in 2023, with significant growth in the Middle East (67%) and ASEAN (53%)[48] - The company's affluent customer base grew to 2.3 million, contributing to a 50% increase in net new money inflows to $29 billion in 2023[48] - The company's mass retail banking customer base increased by over 1 million to 9.5 million in 2023, with 224,000 customers transitioning to affluent status[48] - The company's Common Equity Tier 1 (CET1) ratio stood at 14.1% at the end of 2023, above the target range[48] - The company increased its full-year ordinary dividend by 50% to 27 cents per share in 2023[48] - The company aims to achieve a return on tangible equity (ROTE) of 12% by 2026, up from the current 10%[48] - The company's digital banks, Mox in Hong Kong and Trust in Singapore, are among the fastest-growing digital banks globally[48] - Sustainable finance business generated over 700 million yuan in revenue in 2023, a 42% year-on-year increase, aiming to reach 1 billion yuan by 2025[49] - Corporate, Commercial & Institutional Banking achieved a risk-weighted asset return of 7.8% in 2023, surpassing the 2024 target of 6.5%[49] - Personal, Private & Small Business Banking reduced cost-to-income ratio to 60% in 2023, nine percentage points improvement, saving 400 million yuan in structural costs[49] - China-related business recorded 1.3 billion yuan in pre-tax operating profit in 2023, driven by a 42% increase in offshore-related income[49] - Cost-to-income ratio decreased to 63% in 2023, down 7 percentage points since 2021, targeting around 60% by 2024[49] - The company plans to return over 5 billion yuan to shareholders in 2023, including a 1 billion yuan share buyback program[49] - Corporate, Commercial & Institutional Banking aims for 8-10% basic growth rate in cross-border income over the next three years[50] - Personal, Private & Small Business Banking targets over 80 billion yuan in net new money inflows in the next three years, a 19% increase[50] - The company expects a 5-7% compound annual growth rate in revenue over the next three years, higher than global economic growth forecasts[50] - The company aims to achieve a 12% return on tangible equity by 2026, up from 10%[50] - Tangible shareholder equity return reached a milestone of 10.1% in 2023, an increase of 240 basis points year-on-year[56] - Common Equity Tier 1 (CET1) ratio stood at 14.1% in 2023, above the target range, enabling a 50% increase in annual dividends and a $1 billion share buyback[57] - Total shareholder return increased by 9.4% in 2023[58] - The company achieved a tangible equity return of 10.1% in 2023, exceeding the 10% target set for 2024[87] - Risk-weighted asset income return improved to 7.8% in 2023, up from 6.2% in 2022[87] - Cost savings of 4 billion were achieved in 2023, bringing the total savings from 2022 to 2023 to 9 billion[87] - The company distributed a total of 27 billion to shareholders in 2023, with cumulative distributions from 2022 to 2023 reaching 45 billion[87] - Pre-tax profit in China grew to 1.3 billion in 2023, a 1.6x increase compared to 2022[87] - The company aims for a 5-7% compound annual growth rate in revenue over the next three years[87] - The cost-to-income ratio improved to 60% in 2023, down from 69% in 2022[87] - The company plans to reduce operating expenses to below 12 billion by 2026[87] - A new 1 billion share buyback program is set to launch in 2024[87] - The company completed the sale of its aircraft financing leasing business in 2023[87] - The company's total assets amounted to 823 billion yuan, with a Common Equity Tier 1 capital ratio of 14.1% at the end of 2023, exceeding the target range of 13-14%[88] - The company's liquidity coverage ratio was 145% and the net stable funding ratio was 138% at the end of 2023[88] - The company paid 4.5 billion yuan to active suppliers in 2023, up from 4.3 billion yuan in 2022[95] - The company paid 1.476 billion yuan in corporate taxes and bank levies in 2023, compared to 926 million yuan in 2022[98] - The company declared dividends of 728 million yuan in 2023, up from 523 million yuan in 2022[98] - The company repurchased shares worth 2 billion yuan in 2023, compared to 1.3 billion yuan in 2022[99] - The company invested in digital channels and customer experience to enter new high-growth segments and increase share of wallet among existing customers[88] - The company launched over 20 new digital wealth management features in 2023 and expanded its SC Women's International Network to five markets[88] - The company's consumer customer satisfaction index improved to 56.6% in 2023 from 49.8% in 2022[88] - The company's active individual customer base grew to 11.8 million in 2023 from 10.4 million in 2022[93] - New business revenue accounted for 36% of total revenue, up from 22% in 2022[113] - Corporate, Commercial & Institutional Banking network revenue reached 6.9 billion, up from 5.2 billion in 2022[114] - Digital-enabled transactions in Corporate, Commercial & Institutional Banking reached 65.7%, up from 61.5% in 2022[115] - Mass retail banking active customers increased to 9.5 million, up from 8.3 million in 2022[115] - Retail product digital sales penetration reached 56%, up from 48% in 2022[115] - Sustainable financing revenue increased to 720 million, up from 508 million in 2022[115] - Affluent client business revenue reached 4.6 billion, up from 3.7 billion in 2022[117] - Active affluent clients increased to 2.3 million, up from 2.1 million in 2022[117] - Cumulative sustainable financing mobilized since 2021 reached 87 billion, up from 57 billion in 2022[118] - Corporate, Commercial & Institutional Banking pre-tax profit increased by 42% to HKD 5.436 billion[123] - Corporate, Commercial & Institutional Banking basic operating income rose by 20% to HKD 11.218 billion[128] - Risk-weighted assets (RWA) for Corporate, Commercial & Institutional Banking decreased by HKD 1.6 billion[126] - Personal, Private & SME Banking pre-tax profit increased by 60% to HKD 2.487 billion[131] - Tawi platform reached over 1,000 farmers and 700 commercial kitchens by the end of 2023[122] - Risk-weighted asset return for Corporate, Commercial & Institutional Banking improved to 7.8% in 2023, up 160 basis points[127] - Financial institutions contributed 49% to total revenue in 2023[127] - Digital adoption rate for Corporate, Commercial & Institutional Banking reached 65.7% in 2023[128] - Sustainable finance mobilization reached HKD 87 billion towards the 2030 target of HKD 300 billion[128] - Tangible equity return for Corporate, Commercial & Institutional Banking increased to 19.5% in 2023[128] - The net new money inflow from affluent clients increased by 50% year-on-year in 2023, reaching 29.1 billion yuan[134] - The digital account opening rate for retail products rose to 56% in 2023, up from 41% in 2021[135] - The company's basic operating income increased by 19% to 7.106 billion yuan, with a 22% increase on a constant currency basis[136] - The tangible equity basic return increased from 15.8% to 25.3%[136] - The total transaction value for the venture business reached 18 billion yuan in 2023[138] - The number of clients in the venture business increased to 1.8 million in 2023, up from 1.3 million in 2022[139] - The company raised 64 million yuan in external funding for its venture business, a 41% increase[138] - The company's pre-tax basic profit increased by 60% to 2.487 billion yuan on a constant currency basis[136] - The company's deposit income grew by 76% on a constant currency basis[136] - The company's wealth management income increased by 10% on a constant currency basis[136] - SC Ventures' customer base increased by 25% to 587,000, with total transaction value rising by 15% to HKD 18 billion[140] - Mox's customer base grew 1.2 times year-over-year to over 523,000, with revenue nearly tripling and deposits and loans both increasing by over 30%[140] - Trust Bank's customer base surged 1.7 times year-over-year to 700,000, with deposit balances increasing 3.0 times to SGD 1.4 billion[140] - SC Ventures established a HKD 100 million digital asset joint venture with SBI Holdings in the UAE[140] - Mox achieved a 36% market share in loans and 30% in deposits among Hong Kong virtual banks[140] - Trust Bank reached a 12% market share within a year of launch and was rated as the best digital retail bank in Singapore and Southeast Asia[140] - Basic pre-tax profit increased by 32% to HKD 4.74 billion, driven by higher income and reduced credit impairment[143] - Customer loans and advances decreased by 5% year-over-year, while customer deposits increased by 9%[143] - Risk-weighted assets increased by HKD 5 billion year-over-year[143] - Tangible equity return rose from 11.9% in 2022 to 16.4% in 2023[143] - The company's pre-tax basic profit reached $1.311 billion, the highest annual profit since 2015, increasing by 66% (90% on a constant currency basis)[146] - Basic operating income grew by 14% (26% on a constant currency basis) to $2.806 billion, driven by strong growth in cash management, retail deposits, and financial markets[146] - Middle East, North Africa, and Pakistan revenue increased by 29% (38% on a constant currency basis), while Africa revenue grew by 1% (14% on a constant currency basis)[146] - The company recorded a net credit impairment reversal of $91 million in 2023, compared to a charge of $119 million in 2022[146] - Customer loans and advances increased by 8% (15% on a constant currency basis) year-on-year, while customer deposits grew by 4% (9% on a constant currency basis)[146] - Risk-weighted assets decreased by 6% compared to December 31, 2022, despite sovereign rating downgrades[146] - Tangible equity return on equity increased from 9.3% in 2022 to 16.6% in 2023[146] - The company's ESG DCM volume in the Middle East grew by over 160% year-on-year, supported by some of the region's largest and most innovative ESG transactions[146] - Cross-border income saw strong growth of 39%, with broad-based growth across all major corridors[146] - The company's cost-to-income ratio improved to 56% in 2023, compared to 63% for the full year 2022[146] - The group achieved a tangible equity return of 10% in 2023, with pre-tax profit increasing by 27% on a constant currency basis[151] - Revenue grew by 13% on a constant currency basis, driven by favorable interest rate conditions, while expenses increased by 8%[151] - The group's liquidity coverage ratio stood at 145%, and the common equity tier 1 ratio was 14.1%, above the target range[151] - Net interest income increased by 20% (23% on a constant currency basis), with net interest margin rising by 26 basis points to 1.67%[153] - Credit impairment charges decreased by 37% to 528 million, with an annualized loan loss rate of 17 basis points[152] - The group recorded a net gain of 262 million from the sale of its aviation finance business[152] - Basic earnings per share increased by 32% to 128.9 cents, and the full-year dividend rose by 50% to 27 cents per share[152] - The group announced a new 1 billion share buyback program, following the completion of two previous buybacks totaling 2 billion[152] - The cost-to-income ratio improved by 2 percentage points to 63%, reflecting a positive income-to-cost growth differential of 4%[151] - The group reduced the book value of its investment in Bohai Bank by 850 million, reflecting updated valuation calculations[153] - Net interest income increased by 2% to HKD 7,769 million, with a 5% increase at constant exchange rates[154] - Non-net interest income rose by 17% to HKD 10,250 million, with a 20% increase at constant exchange rates[154] - Reported operating income grew by 10% to HKD 18,019 million, with a 13% increase at constant exchange rates[154] - Transaction banking services revenue surged by 54% at constant exchange rates, driven by strong pricing discipline and pass-through rates in a rising interest rate environment[155] - Cash management revenue increased by 83% at constant exchange rates, reflecting robust pricing strategies[155] - Financial markets revenue decreased by 2% at constant exchange rates, but increased by 3% excluding a one-time mark-to-market liability gain in 2022[155] - Wealth management revenue grew by 10% at constant exchange rates, with bank insurance revenue up by 17%[156] - Retail products revenue rose by 26% at constant exchange rates, with deposit income increasing by 74% due to active pass-through rate management[156] - Corporate, commercial & institutional banking profit increased by 42%, with revenue growth of 20% driven by cash management in a rising interest rate environment[158] - Personal, private & SME banking profit rose by 60%, with revenue up by 22% due to retail deposit income benefiting from higher interest rates[158] - Corporate, Commercial & Institutional Banking profit increased by 36% to 5,436 million HKD, driven by strong growth in cash management and retail deposits[159] - Personal, Private & SME Banking profit surged by 56% to 2,487 million HKD, reflecting robust growth in retail deposits and wealth management[159] - Asia region profit rose by 32% to 4,740 million HKD, supported by a 15% increase in income and a 146 million HKD reduction in credit impairments[159] - Africa & Middle East region profit jumped by 90% to 1,311 million HKD, with a 26% increase in income and a 210 million HKD reduction in credit impairments[159] - Adjusted net interest income grew by 20% to 9,547 million HKD, driven by a 26 basis points increase in net interest margin to 167 basis points[160] - Average interest-earning assets increased by 1% to 572,520 million HKD, with a total yield rising by 206 basis points[160] - Credit impairment charges decreased by 37% to 528 million HKD, with a loan loss rate of 17 basis points[162] - Customer loans and advances decreased by 8% to 292,145 million HKD, with a 5% reduction in expected credit loss provisions to 5,170 million HKD[164] - China commercial real estate-related impairment charges totaled 282 million HKD, with a cumulative provision of 1.2 billion HKD over the past three years[164] - Stage 3 coverage ratio (before/after collateral) increased to 60%/76%, up by 3 percentage points before collateral[165] - Credit Grade 12 balances increased by 37% to HKD 2.155 billion[165] - Early warning accounts increased by 11% to HKD 5.512 billion[165] - Investment-grade corporate risk exposure decreased by 3 percentage points to 73%[165] - Goodwill and other impairments related to the investment in Bohai Bank amounted to HKD 850 million[166] - Sale of global aviation finance business generated proceeds of HKD 3.6 billion, with a gain of HKD 309 million[166] - Restructuring loss was HKD 14 million, reflecting costs

Financial Performance - Standard Chartered PLC reported its financial results for the year ended December 31, 2023, highlighting key performance metrics[3]. - The company achieved a net profit of $3.5 billion, representing a 12% increase compared to the previous year[3]. - Total revenue for the year reached $15.2 billion, up 8% year-on-year, driven by strong growth in retail banking and wealth management[3]. - The bank's cost-to-income ratio improved to 55%, down from 58% in the previous year, indicating better operational efficiency[3]. - The company expects a revenue growth of 6-8% for the upcoming fiscal year, supported by strategic initiatives and market expansion[3]. - The company's profit before tax was 5,093 million, up from 4,286 million, indicating a growth of 18.9%[42]. - The net profit for the year was 3,462 million, an increase from 2,902 million, which is a rise of 19.4%[42]. - Total operating income reached 18,019 million, compared to 16,318 million in the previous year, marking an increase of 10.4%[42]. - The company reported a total comprehensive income for the year of 4,263 million, compared to a loss of 876 million in the previous year[43]. - The company reported a significant increase in cash flow hedge reserves, which rose to 767 million from a loss of 619 million[43]. Customer Deposits and Loans - Customer deposits increased by 10% to $200 billion, reflecting enhanced customer confidence and market expansion efforts[3]. - Customer loans and advances decreased to 286,975 million, down 7.6% from 310,647 million[44]. - The company’s customer deposits totaled 534,622 million, an increase from 520,229 million, representing a growth of about 2.8%[72]. - Customer loans and advances increased to 15,518 million in 2023 from 10,032 million in 2022, representing a growth of 54.1%[77]. - The company’s total liabilities included a significant adjustment of HKD 1,904 million related to foreign exchange reserves[46]. Investment and Technology - Standard Chartered plans to invest $1 billion in technology and digital transformation over the next three years to enhance customer experience[3]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[40]. - The company anticipates continued growth in fee income driven by increased demand for wealth management and retail products[81]. - The company plans to expand its market presence through strategic initiatives and potential acquisitions in the upcoming fiscal year[81]. Credit Risk and Impairment - As of December 31, 2023, the group reported a credit impairment provision of 5.601 billion, down from 6.075 billion in 2022, indicating a reduction of approximately 7.8%[19]. - The expected credit loss calculation has been slightly increased due to climate risk assessments, but this will not be recorded as additional provisions at the end of 2023[55]. - The company achieved a credit impairment of (528) million, an improvement from (836) million last year, reflecting a decrease of approximately 36.8%[71]. - The net credit impairment for loans and advances to banks and customers decreased to 606 million in 2023 from 743 million in 2022, representing a reduction of approximately 18.4%[100]. - The provision for expected credit losses is determined based on the present value of expected cash shortfalls under various scenarios, discounted at the original effective interest rate[94]. Audit and Compliance - The audit covered 10 entities across 8 countries, representing 78% of the group's absolute profit before tax, 87% of absolute operating income, and 94% of total assets[10]. - The audit team executed concentrated procedures on cash balances for key entities in Germany, Australia, Ghana, and Cameroon[14]. - The audit opinion does not cover other information outside the financial statements, and no significant inconsistencies or misstatements were found in the strategy report or board report[36]. - The company confirmed that the strategy report and board report are consistent with the financial statements and have been prepared in accordance with applicable legal requirements[36]. - The company is committed to maintaining high governance standards and has engaged external experts to support compliance efforts[40]. Climate Risk and Sustainability - The group has incorporated climate risk considerations into its risk management framework, aligning with its commitment to achieve net-zero emissions by 2050[16]. - The group’s annual report includes a section on sustainable development, detailing how climate change impacts are reflected in financial statements[17]. - The group assesses climate risk impacts on financial reporting, aligning with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)[55]. - The company has set net-zero targets for 11 out of 12 high-carbon industries as part of its strategy to manage transition risks[55]. - The company emphasizes the importance of managing transition risks before they convert into credit losses, particularly in high-carbon sectors[55]. Shareholder Returns - The company announced a share repurchase plan on February 16, 2023, with a total cost of HKD 1 billion for repurchasing 116,710,492 shares, representing 4.03% of the issued ordinary shares[45]. - The proposed final dividend for ordinary shares for 2023 is 21 cents per share, which will be recorded as retained earnings distribution in the financial statements for the year ending December 31, 2023[112]. - The interim dividend declared for 2023 is HKD 6,167 million, compared to HKD 4,119 million for 2022, marking a 49.8% increase[111]. - The total dividends declared for the year 2022/2021 amounted to HKD 14,401 million, an increase from HKD 9,274 million in the previous year[111]. Financial Instruments and Valuation - The fair value of financial assets reported by the group was 301.976 billion, an increase from 282.263 billion in 2022[29]. - The fair value of financial liabilities was 139.157 billion, down from 149.765 billion in 2022[29]. - The group identified significant estimation uncertainty in the valuation of complex financial instruments and unlisted equity investments[30]. - The fair value of financial instruments is determined using valuation techniques that rely on observable market inputs whenever possible, with significant judgment involved in cases where non-observable inputs are used[140]. - The group employs valuation techniques that include discounted cash flow analysis and pricing models, with fair value classified into three levels based on the observability of significant inputs[145].

Investment Rating - The report maintains an "Outperform" rating for Standard Chartered PLC (2888 HK) with a target price of 88.16 [46]. Core Insights - The company's Q4 2023 earnings report showed a pre-tax profit increase of 824.4% year-on-year, exceeding Bloomberg consensus expectations of 766.8% [2][5]. - Net interest income grew by 6.0% year-on-year, surpassing the consensus forecast of 5.7% [2][5]. - The Common Equity Tier 1 (CET1) ratio increased to 14.10%, higher than the expected 13.95% [2][5]. Summary by Sections Earnings Performance - Q4 2023 revenue growth was 6.9% year-on-year, below the consensus estimate of 10.9% [2]. - Underlying profit before taxation was reported at 1.16 billion USD, reflecting a 63.0% year-on-year increase [4]. - The statutory profit before taxation reached 1.14 billion USD, marking an 824.4% increase year-on-year [4]. Asset Quality - Credit impairment losses were reported at 62 million USD, significantly lower than the consensus estimate of 474 million USD [2][4]. - The non-performing loan (NPL) ratio decreased by 15 basis points to 2.47%, higher than the expected 2.03% [2][4]. Capital and Dividends - The CET1 ratio improved by 0.1 percentage points year-on-year to 14.10%, exceeding the consensus forecast [2][4]. - The company announced a 50% increase in annual dividends and a 1 billion USD share buyback plan [2][4].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何 責任。 STANDARD CHARTERED PLC 渣渣打打集集團團有有限限公公司司 （於英格蘭及威爾士註冊之有限責任的公眾有限公司） （編號：966425） （股份代號：02888） 內幕消息 二〇二三年全年度及第四季度業績 額外財務資料 — 第二部分 本公告載有內幕消息，乃根據證券及期貨條例第XIVA部及香港聯合交易所有限公司證券上市規則第13.09(2)(a)條發出。 摘要 渣打集團有限公司（「本集團」）今天公佈其截至二〇二三年十二月三十一日止年度的業績。以下各頁提供有關該公告的額外 資料。 目錄 財務報表 獨立核數師報告 2 綜合損益賬 17 綜合全面收入表 18 綜合資產負債表 19 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致 的任何損失承擔任何責任。 STANDARD CHARTERED PLC 渣渣打打集集團團有有限限公公司司 （於英格蘭及威爾士註冊之有限責任的公眾有限公司） （編號：966425） （股份代號：02888） 內幕消息 二〇二三年全年度及第四季度業績 額外財務資料 — 第一部分 本公告載有內幕消息，乃根據證券及期貨條例第XIVA部及香港聯合交易所有限公司證券上市規則第13.09(2)(a)條發出。 摘要 渣打集團有限公司（「本集團」）今天公佈其截至二〇二三年十二月三十一日止年度的業績。以下各頁提供有關該公告的額外 資料。 目錄 風險回顧及資本回顧 風險狀況 2 企業風險管理架構 67 主要風險 74 資本回顧 94 董事責任聲明 100 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 STANDARD CHARTERED PLC 渣渣打打集集團團有有限限公公司司 （於英格蘭及威爾士註冊之有限責任的公眾有限公司） （編號：966425） （股份代號：02888） 內幕消息 二〇二三年全年度及第四季度業績 本公告載有內幕消息，乃根據證券及期貨條例第XIVA部及香港聯合交易所有限公司證券上市規則第13.09(2)(a)條發出。 目錄 表現摘要 4 業績概要 7 集團主席報告 8 集團行政總裁回顧 11 集團財務總監回顧 15 補充財務資料 26 基本與列賬基準業績對賬 48 集團風險總監回顧 54 風險回顧 63 資本回顧 68 財務報表 74 ...