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].

Financial Performance - Standard Chartered PLC reported its financial results for the year ending December 31, 2023, with a focus on maintaining compliance with international accounting standards[2]. - The group's absolute pre-tax profit for 2023 was 78%, a decrease from 82% in 2022[11]. - The group's absolute operating income for 2023 was 87%, compared to 89% in 2022[11]. - The company's profit before tax was 5,093 million, up from 4,286 million in 2022, marking a growth of 18.9%[37]. - The net profit for the year was 3,462 million, an increase from 2,902 million in 2022, which is a rise of 19.3%[37]. - Basic earnings per share rose to 108.6 cents, compared to 85.9 cents in the previous year, indicating a growth of 26.4%[37]. - The company reported a significant recovery in other comprehensive income, totaling 801 million compared to a loss of 3,778 million in 2022[38]. - The total comprehensive income for the year was 4,263 million, compared to a loss of 876 million in the previous year[38]. Audit and Compliance - The audit covered complete financial data from 10 entities across 8 countries, representing 78% of pre-tax profit, 87% of operating income, and 94% of total assets[9]. - The audit opinion confirmed that the financial statements present a true and fair view of the group's financial position as of December 31, 2023[4]. - The company emphasized the importance of assessing external risks, including geopolitical factors, in its ongoing operations and financial reporting[8]. - The company is committed to transparency and adherence to the UK Corporate Governance Code in its financial reporting practices[8]. - The company has established internal controls to ensure the accuracy of financial reporting[32]. - The audit committee's work and effectiveness of risk management and internal control systems were described in the annual report[32]. - The company confirmed that the strategic report and board report provided information consistent with the financial statements[30]. Credit Risk and Impairment - Key audit matters included credit impairment, accounting treatment for investments in joint ventures, and valuation of high-risk financial instruments[9]. - As of December 31, 2023, the company reported a credit impairment provision of 5.601 billion (compared to 6.075 billion in 2022)[18]. - The expected credit loss (ECL) is influenced by factors such as the Chinese commercial real estate (CRE) investment portfolio, sovereign downgrades, high interest rates, inflation, and geopolitical uncertainties[20]. - The company reported a credit impairment of 508 million, down from 836 million in 2022, showing a decrease of 39.1%[37]. - The company assessed credit risk based on borrower credit ratings, with significant changes in ratings indicating increased credit risk[90]. - The total credit impairment decreased to 508 million in 2023 from 836 million in 2022, marking a decline of approximately 39.2%[95]. Climate Risk Management - Climate risk management is integrated into the group's risk framework, reflecting increasing stakeholder concern about climate change impacts[15]. - The company is committed to aligning its financial reporting with climate change impacts, aiming for net-zero emissions by 2050[16]. - The group assesses climate risk impacts on financial reporting, aligning disclosures with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations[50]. - 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[50]. - The group has set net-zero targets for 11 out of 12 high-carbon industries as part of its strategy to manage transition risks[50]. Strategic Initiatives - The company plans to continue its strategic initiatives, including market expansion and potential acquisitions, to enhance growth prospects[2]. - The company plans to continue its market expansion and product development strategies in the upcoming fiscal year[40]. - The company has initiated new strategies focusing on technology development and market expansion, particularly in the Asia region[68]. Financial Position and Assets - Total assets for the group in 2023 accounted for 94%, slightly down from 95% in 2022[11]. - The fair value of financial assets measured at fair value as of December 31, 2023, is 301.976 billion, an increase from 282.263 billion in 2022, while financial liabilities measured at fair value are 139.157 billion, down from 149.765 billion in 2022[24]. - The company reported a total of 139 million in other temporary differences in 2023, compared to (11) million in 2022[103]. - The total amount of issued debt securities was 10,817 million[126]. Governance and Risk Management - The company is committed to enhancing its governance and compliance measures to mitigate risks associated with fraud and regulatory breaches[34]. - The company conducted a robust assessment of emerging and principal risks[32]. - The company has sufficient capital and liquidity to meet minimum regulatory capital and liquidity requirements, as confirmed by stress testing and recovery plans[53]. - The company has implemented remedial measures to address significant deficiencies in special access rights management controls, resulting in a decrease in risk compared to the previous year[25]. Taxation - The current tax expense for the year was 1,631 million, with an effective tax rate of 32.0%[98]. - The total pre-tax profit for the year was 5,093 million, leading to a tax expense of 1,197 million calculated at the UK corporate tax rate of 23.5%[100]. - The company recorded a tax loss of 1.4 billion related to the impairment of its investment in Bohai Bank[99]. Shareholder Returns - 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[107]. - The company paid dividends to ordinary shareholders amounting to 568 million, compared to 393 million in the previous year, indicating a 44.5% increase[42]. - The interim dividend declared for 2023 is 6,167 million, compared to 4,119 million for 2022, reflecting an increase of approximately 49.8%[106]. Financial Instruments and Valuation - The company utilizes valuation techniques to determine fair value for financial instruments in inactive markets, ensuring accurate financial reporting[119]. - The fair value of financial instruments is determined using valuation techniques that rely on observable market inputs, with significant judgment involved in estimating the fair value of level 3 assets[135]. - The company has a strategy for acquiring non-trading equity instruments at fair value through other comprehensive income for strategic purposes rather than capital gains[114]. - The company has established robust risk management strategies to mitigate adverse outcomes related to the cessation of interbank offered rates[127].

Credit Risk Management - The overall credit risk management framework is based on International Financial Reporting Standards (IFRS) 9, which includes expected credit loss models [4]. - The financial instruments are categorized into three stages based on credit risk and impairment [5]. - The company reported a stable Stage 1 coverage ratio of 0.2% [8]. - The risk management section includes a comprehensive overview of credit risk and capital review [2]. - The expected credit loss coverage ratio is reported, indicating the proportion of expected credit losses to total loan balances [19]. - The bank's internal credit rating system categorizes loans into 14 grades, with grades 1 to 12 for performing loans and grades 13 to 14 for impaired loans [18]. - The expected credit loss provisions are segmented by business category and stage, providing insights into risk management strategies [19]. - The company employs various risk mitigation tools, including collateral and credit insurance, to reduce potential credit losses [49]. Customer Loans and Advances - The total amount of customer loans and advances is HKD 2,740 billion, with 94% classified in Stage 1, reflecting a focus on high-quality lending [7]. - Customer loans and advances amount to 286,975 million yuan, with a net risk exposure of 168,483 million yuan, down from 310,647 million yuan in the previous year [15]. - Total loans and advances amounted to 292.145 billion, with a breakdown of 273.692 billion in customer loans and 182.390 billion in unused commitments [20]. - The total amount of unused commitments is 182,390 million yuan, with a net risk exposure of 179,450 million yuan [15]. - The total amount of customer loans classified as high risk in 2023 were 8 million in China, while Hong Kong reported 0 million, maintaining a stable risk profile [78]. Credit Impairment - The credit impairment charge was a net expense of 508 million, down from 836 million as of December 31, 2022 [11]. - The total credit impairment amounted to 5.170 billion, with 1.215 billion attributed to the second stage of loans [20]. - The total credit impairment for the first stage is 44,384 million yuan, while the second stage shows a credit impairment of 540 million yuan [16]. - The total credit impairment for the year shows a decrease of 3,533 million compared to the previous year, indicating improved credit quality overall [22]. - The total credit impairment provisions for 2023 amount to (4.320) billion, compared to (4.457) billion in 2022, indicating a decrease of about 3.1% [46]. Coverage Ratios - The company maintains a stable overall coverage ratio of 76% after accounting for collateral [8]. - The provision coverage ratio increased to 72% for credit impairment in Chinese commercial real estate, up from 56% [13]. - The expected credit loss provisions based on model predictions were 1,071 million for 2023, down from 1,267 million in 2022, reflecting a reduction of approximately 15.4% [84]. - The coverage ratio for expected credit losses was 1% overall, with higher risk categories showing a coverage of 2% [27]. Economic Outlook and Projections - The global GDP growth forecast for 2024 is slightly below 3%, indicating a slowdown compared to the average growth of 3.7% from 2010 to 2019 [88]. - China's GDP growth is expected to slow from over 5% in 2023 to 4.8% in 2024, reflecting ongoing challenges in the real estate sector and declining consumer confidence [89]. - The projected GDP growth for China in 2024 is 4.8% [103]. - The company is utilizing Monte Carlo simulations to assess a range of 50 economic scenarios for expected credit losses, reflecting inherent uncertainties in economic forecasts [89]. Sector-Specific Insights - The total amount of loans in the higher risk category (15.751–99.999% probability of default) is 917 million, with a significant increase in credit impairment of 60 million [22]. - The total amount of loans classified as defaulted is 5,508 million, highlighting the need for ongoing risk management strategies [22]. - The total credit impairment for the third stage amounted to 2.499 billion, reflecting a decrease of 2.529 billion from the previous period [75]. - The total expected credit loss for satisfactory loans in 2023 was (149) million, compared to (119) million in 2022, indicating an increase in expected losses [78]. Risk Exposure - The total risk exposure in high-risk and cyclical industries decreased by 3 billion to 29 billion, mainly due to the exit from the aviation sector [12]. - The total risk exposure in Chinese commercial real estate decreased by 800 million to 2.6 billion, with the credit impairment ratio rising to 58% [13]. - The total maximum credit risk on the balance sheet as of December 31, 2023, is 1,055,148 million yuan, with a net risk exposure of 799,808 million yuan [15]. - The total net risk exposure (on and off-balance sheet) was 96,720 million in 2023, down from 99,807 million in 2022, indicating a decrease of approximately 3.1% [72].

Financial Performance - Standard Chartered PLC reported a full-year revenue of $19.2 billion, representing a 10% increase compared to the previous year[8]. - The bank's net profit for the fourth quarter was $1.5 billion, up 15% year-over-year[8]. - Operating income rose by 10% to $17.4 billion for the year, with net interest income increasing by 23% to $9.6 billion[9]. - The company achieved a tangible shareholder return of 10.1% for 2023, an increase of 2 percentage points[9]. - The company reported a basic earnings per share of $128.9 for 2023, compared to $97.9 in 2022, reflecting a significant increase[13]. - The pre-tax profit for Q4 was $5.7 billion, up 27% on a constant currency basis[10]. - The company reported a pre-tax profit of 5,678 million for 2023, compared to 4,645 million in 2022, showing an increase of about 22.2%[97]. - The net profit for the full year 2023 reached 3,462 million, an increase of 19% from 2,902 million in 2022[86]. Customer Growth and Deposits - Customer deposits increased by 8% to $300 billion, reflecting strong growth in retail banking[8]. - The retail banking customer base grew by over 1 million to 9.5 million, with 224,000 retail customers promoted to affluent status in 2023[20]. - The number of affluent customers increased to 2.3 million, contributing to a net inflow of new funds of $29 billion, a 50% year-on-year increase[20]. - Customer deposits reached HKD 155,446 million in Hong Kong, up from HKD 138,713 million in Q4 2022, reflecting a growth of 12%[84]. Operational Efficiency - The bank's cost-to-income ratio improved to 54%, down from 56% in the previous year, indicating better operational efficiency[8]. - The cost-to-income ratio (excluding bank levies) improved to 63.4% in Q4 2023 from 65.4% in Q4 2022[13]. - The cost-to-income ratio improved to 55.1% in Q4 2023, compared to 54.8% in Q4 2022, indicating better operational efficiency[49]. - The cost-to-income ratio improved to 49.9% in Q4 2023 from 58.6% in Q4 2022, indicating better operational efficiency[84]. Strategic Initiatives - Standard Chartered expects a revenue growth of 8-10% for the upcoming fiscal year, driven by increased demand in Asia[8]. - The bank plans to invest $1 billion in technology and digital transformation over the next three years to enhance customer experience[8]. - The company has initiated a strategic partnership with fintech companies to enhance its digital offerings and streamline operations[8]. - The company is focused on becoming a leading digital and data-driven bank, enhancing customer experience through product innovation and sustainable finance[51]. Sustainability and ESG Goals - The bank is committed to achieving net-zero carbon emissions by 2050, aligning with its ESG goals[8]. - The company is committed to supporting the development of renewable energy and electric vehicle industries for sustainable economic growth[18]. - The company has adopted the Taskforce on Nature-related Financial Disclosures to enhance sustainability efforts in diverse markets[16]. - The company is closely monitoring regulatory developments related to sustainable finance and ESG, responding through industry organizations[124]. Shareholder Returns - The company announced a 50% increase in annual dividends, totaling $728 million for the year[10]. - The company aims to return at least $5 billion to shareholders from 2024 to 2026 and plans to continue increasing the annual dividend per share[12]. - The company has committed to returning over $5 billion to shareholders by the end of 2024, with a $1 billion share buyback announced[20]. - The annual dividend has been increased to 27 cents per share, alongside a share buyback program of $1 billion[15]. Credit Quality and Impairment - Credit impairment charges decreased to $62 million in Q4, down from $232 million in the previous quarter[9]. - The credit impairment charge significantly improved by 82% to $62 million in Q4 2023 from $340 million in Q4 2022[28]. - Total credit impairment charges, including restructured businesses, amounted to 508 million, a decrease from 836 million in the previous year[134]. - The overall credit quality metrics indicate a shift towards higher risk categories, particularly in the second stage[133]. Market Expansion - Standard Chartered aims to expand its presence in the African market, targeting a 20% increase in customer base by 2025[8]. - The company is investing in high-growth markets, particularly in Asia, Africa, and the Middle East, with new digital products for SMEs[18]. - The company plans to exit markets in Africa and the Middle East, focusing on enhancing its core business segments[48]. Risk Management - The company is actively monitoring geopolitical risks and has conducted additional reviews of its portfolios in response to macroeconomic challenges[106]. - The group is committed to mitigating information and cybersecurity risks to protect against significant operational and reputational damage[113]. - The group acknowledges the interconnectedness of geopolitical risks and their potential effects on financial performance and reputation[115]. - The company is focused on maintaining sufficient capital and liquidity to support operations and manage interest rate risks[113].

Financial Performance - Revenue increased by 18% year-on-year to $3.3 billion for the first half of 2023, with a pre-tax profit rise of 29%[5] - Total income for the first half of 2023 was $9 billion, with net interest income up 35% to $4.8 billion[5] - Operating income for the first half of 2023 reached HKD 8,951 million, a 14% increase from HKD 7,859 million in the same period of 2022[9] - The group reported a profit before tax of HKD 3,323 million, representing a 20% increase from HKD 2,772 million in the previous year[21] - The net profit before tax for the first half of 2023 was 3,306 million, compared to 2,651 million in the same period of 2022, indicating an increase of 24.7%[67] - The company reported a net profit of 2,145 million for Q2 2023, reflecting a 15% increase from 1,873 million in Q2 2022[62] - The pre-tax profit before tax increased by 50% to HKD 2,949 million compared to HKD 1,960 million in the first half of 2022[42] Shareholder Returns - The company announced a new share buyback program worth $1 billion to return additional value to shareholders[5] - The bank announced a 50% increase in interim ordinary share dividends, amounting to HKD 168 million[6] - The company aims to return over $5 billion to shareholders from 2022 to 2024, with a total shareholder return of $3.9 billion since early 2022, including a $1 billion share buyback announced recently[17] - The tangible shareholder equity return is targeted to reach 10% for the year[39] Customer Loans and Deposits - Customer loans and advances decreased by $10 billion or 3% since March 31, 2023, totaling $290 billion[5] - Customer deposits increased by $7 billion or 2% since March 31, 2023, reaching $470 billion[5] - Customer loans and advances decreased by HKD 21 billion or 7% to HKD 2,900 billion since December 31, 2022, while customer deposits increased by HKD 8 billion or 2% to HKD 4,700 billion[6] - Total customer loans and advances amounted to 295,508 million, a decrease of 3% from 305,975 million in the previous quarter[31] Credit Quality and Impairments - Credit impairment charges for Q2 2023 were $146 million, an increase of $80 million year-on-year[5] - Credit impairment charges decreased by HKD 92 million year-on-year to HKD 172 million, with a loan loss rate of 11 basis points compared to 15 basis points in the same period last year[6] - Credit impairment decreased by 35% to HKD 172 million from HKD 264 million year-on-year, contributing to a pre-tax profit increase of 29% to HKD 3,300 million[10] - The annualized loan loss rate increased by 12 basis points to 2.6%, indicating a faster reduction in total customer loans compared to the third stage loans[32] Operating Expenses and Efficiency - Operating expenses rose by 8% year-on-year to $5.5 billion, with a cost-to-income ratio improving by 3 percentage points to 61%[5] - The cost-to-income ratio for personal, private, and SME banking improved by 14 percentage points year-on-year to 58%, aligning with the target of 60% by 2024[6] - The cost-to-income ratio improved to 48.4% in the first half of 2023, down from 58.4% in the same period last year[40] - The total operating expenses for the first half of 2023 were 5,504 million, compared to 5,096 million in the same period of 2022, reflecting an increase of 8%[67] Capital and Liquidity - The common equity tier 1 capital ratio remained strong at 14.0%, reaching the top end of the 13-14% target range[6] - The liquidity coverage ratio remained high at 164%, well above the minimum regulatory requirement, indicating strong capital and liquidity positions[22] - The liquidity coverage ratio improved to 164% as of June 30, 2023, up from 147% at the end of 2022, indicating strong liquidity management[78] Market and Regional Performance - The Asia region contributed 2,749 million to pre-tax profit, reflecting a 55% increase[26] - The bank's sustainable finance business grew with a 37% year-on-year increase in revenue and an 8% increase in assets since December 31, 2022[7] - The cross-border income from corporate, commercial, and institutional banking increased by 44%, with significant growth in China at 59%[11] - The bank's financial markets business reported a loss of 393 million, impacted by structural and short-term hedging losses[25] Strategic Initiatives and Future Outlook - The company plans to open an office in Egypt in the second half of the year, pending regulatory approval, and has seen over 140% revenue growth in Saudi Arabia's corporate banking since opening its first branch in June 2021[18] - The company is positioned as a leading offshore RMB bank and a major USD settlement bank in New York, reflecting its strong ties to rapidly growing markets in Asia, Africa, and the Middle East[19] - The company expects tangible shareholder equity returns to reach 10% in 2023 and exceed 11% in 2024, with continued growth anticipated thereafter[20] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[60]

Financial Performance - Standard Chartered PLC reported a significant increase in net income for the first half of 2023, reaching $2.5 billion, a 20% increase compared to the same period last year[1]. - The bank's total assets grew to $800 billion, reflecting a 10% year-over-year increase, driven by strong customer deposits and loan growth[1]. - The bank's return on equity (ROE) improved to 10.2%, up from 8.5% in the previous year, reflecting enhanced profitability[1]. - The bank's outlook for the second half of 2023 remains positive, with expected revenue growth of 8-10% driven by strong demand in Asia and Africa[1]. - Standard Chartered PLC has initiated a share buyback program worth $1 billion, aimed at returning capital to shareholders[1]. Credit Quality and Impairment - The credit impairment charges decreased by 15% to $300 million, indicating improved credit quality and risk management[5]. - The credit quality analysis indicates that all loans are assigned a credit rating, with regular reviews based on borrower behavior changes[15]. - The internal risk pairing for credit quality categorizes loans into various risk levels, with the highest quality loans rated from 1A to 5B[17]. - The bank's credit quality for corporate, commercial, and institutional banking shows a range of regulatory default probabilities from 0% to 0.425% for high-quality loans[17]. - The total credit impairment amounted to 5.4 billion, with a net book value of 290.1 billion[19]. Customer Loans and Advances - Customer loans and advances decreased by HKD 20.5 billion to HKD 290 billion, primarily due to a reduction in reverse repos by HKD 13.5 billion to HKD 11 billion[8]. - The total amount of customer loans, excluding reverse repos, decreased by HKD 7 billion to HKD 279 billion[8]. - Total customer loans amounted to 316,107 million, with 295,219 million in the first stage and 13,043 million in the second stage[20]. - The total amount of loans classified as "high risk" reached 1.504 billion, with a credit impairment of 1.450 billion[22]. - The total amount of loans in the "high risk" category decreased by 10% compared to the previous period[22]. Market Expansion and Digital Services - Standard Chartered PLC plans to expand its digital banking services, aiming for a 25% increase in digital customer engagement by the end of 2024[1]. - The bank's market expansion strategy includes entering two new markets in Africa, projected to contribute an additional $500 million in revenue by 2025[1]. - The company plans to enhance its market expansion strategies and focus on new product development to drive future growth[19]. Risk Management and Provisions - The company reported a total of 36.6 billion in fair value through profit or loss, with quality loans at 29.7 billion[19]. - The total expected credit loss for the profit and loss account was $1.1 billion[28]. - The company reported a total of $720.1 million in net risk exposure as of January 1, 2023[28]. - The total expected credit loss provisions for June 30, 2023, amounted to 1,285 million, a decrease from 1,580 million on December 31, 2022[64]. - The management anticipates that future credit risk loss provisions will depend on the current economic health and potential changes in the economic environment[65]. Economic Outlook - The global GDP growth forecast for 2023 is less than 3%, a slowdown compared to the average growth of 3.7% from 2010 to 2019[65]. - China's GDP growth is projected to accelerate from approximately 3% in 2022 to nearly 6% in 2023, supported by favorable base effects and economic reopening[67]. - The US and European economic growth is anticipated to slow significantly this year due to high inflation, tightening monetary policy, and increased financial stability risks[67]. - The average price of Brent crude oil is expected to be around $89 in 2023, down from approximately $100 in 2022[67]. Liquidity and Funding - As of June 30, 2023, the liquidity coverage ratio is 164%, up from 147% as of December 31, 2022[86]. - Customer deposits increased to 484,593 million as of June 30, 2023, compared to 473,383 million as of December 31, 2022, reflecting a 2% growth[89]. - The loan-to-deposit ratio decreased to 53.6% as of June 30, 2023, down from 57.4% as of December 31, 2022, due to a 4% reduction in customer loans[89]. - The liquidity buffer increased to 197,035 million as of June 30, 2023, from 177,037 million as of December 31, 2022[87]. - The group maintains a strong liquidity position despite challenging macroeconomic conditions, focusing on improving the quality and diversification of its funding portfolio[86].

Financial Performance - Revenue increased by 18% year-on-year to 33 billion, with a pre-tax profit rise of 29%[3] - Q2 2023 revenue rose 20% to 46 billion, with a 24% increase on a constant currency basis[3] - Pre-tax basic profit reached HKD 33 billion, up 29% on a constant currency basis, marking the highest level since 2015[4] - Operating income for the six months ended June 30, 2023, was $8,951 million, a 14% increase from $7,859 million in the same period last year[5] - The group’s pre-tax operating profit increased by 29% year-on-year to HKD 3.3 billion, with revenue growth of 18% on a constant currency basis[21] - The company reported a strong financial performance for the first half of 2023, with a basic net interest income of HKD 4,777 million, a 29% increase from HKD 3,694 million in the same period of 2022[19] - The company reported a pre-tax profit of 3,306 million, with corporate banking at 2,915 million and personal banking at 1,373 million[37] Shareholder Returns - Tangible shareholder return for Q2 2023 was 12.1%, up 4 percentage points year-on-year[3] - The company announced a new share buyback plan to return an additional 1 billion to shareholders[3] - The company announced a 50% increase in interim ordinary share dividends, amounting to HKD 1.68 billion[4] - The group announced an interim ordinary share dividend of HKD 0.06 per share, a 50% increase from the previous period, alongside a new HKD 1 billion share buyback plan[21] - The company announced a further share buyback of $1 billion, continuing its commitment to return capital to shareholders[7] - The company announced a share buyback of 1 billion, contributing to a total shareholder return of 3.9 billion since the beginning of 2022[15] Customer Loans and Deposits - Customer loans and advances decreased by 3% to 2.9 trillion since March 31, 2023[3] - Customer deposits increased by 2% to 4.7 trillion since March 31, 2023[3] - Customer loans and advances amounted to HKD 2,900 billion, a decrease of HKD 210 billion or 7% since December 31, 2022[4] - Customer deposits increased to HKD 4,700 billion, up HKD 80 billion or 2% since December 31, 2022[4] - Customer loans and advances decreased by 7% to $290,137 million from $310,647 million year-on-year[5] - The net customer loans and advances as of June 30, 2023, were 290.14 billion, a decrease of 3% from March 31, 2023[28] Credit and Impairment - Credit impairment charges were 1.46 billion, up 80 million year-on-year[3] - Credit impairment decreased by 35% to $172 million from $264 million year-on-year, contributing to a pre-tax profit increase of 29% to $3,306 million[5] - Credit impairment charges totaled 172 million, with corporate banking at 69 million and personal banking at 108 million[37] - Credit impairment charges for the first half of 2023 amounted to 1.72 billion, a decrease of 35% year-on-year[27] - The annualized loan loss rate increased by 12 basis points to 2.6% for the first half of 2023[28] Operating Expenses and Efficiency - Total expenses increased by 8% year-on-year to HKD 55 billion, with a 12% rise on a constant currency basis[4] - The cost-to-income ratio improved to 61.5%, down from 64.9%, reflecting a 345 basis points reduction[5] - Operating expenses increased by 8%, with a 12% rise on a constant currency basis, attributed to strategic investments in wealth management and sustainable finance[21] - The cost-to-income ratio was highlighted as a key performance indicator, reflecting the total operating expenses relative to total operating income[70] Market and Business Growth - The company expects revenue growth of 12-14% on a constant currency basis for 2023[4] - The company reported that 19 markets achieved record revenue in the first half of the year, with 17 markets also reaching record profits[7] - Cross-border income from corporate, commercial, and institutional banking increased by 44% in the first half of the year, with a notable 59% growth in China[8] - The affluent client business generated a net new fund inflow of 13 billion, more than doubling compared to the same period last year[8] - Approximately 450,000 new customers were acquired in the retail banking sector, with an additional 100,000 customers upgraded to affluent status[8] Risk Management and Regulatory Compliance - The company actively monitors sovereign risks in emerging markets, particularly in Pakistan, Zambia, and Sri Lanka, with ongoing debt restructuring efforts noted[72] - The company is enhancing its digital asset risk management capabilities, recognizing the importance of emerging regulations and risk assessments[74] - The company is closely monitoring regulatory developments related to sustainable finance and ESG risk management to provide feedback through industry groups[95] - The company is conducting thematic stress tests and portfolio reviews to assess the impact of extreme but plausible events on its investments[93] Future Outlook - The outlook for 2023 has been raised, with expected tangible shareholder return reaching 10%[3] - The company aims for tangible shareholder equity returns of 10% in 2023 and over 11% in 2024, with continued growth expected thereafter[18] - The company plans to maintain flexibility within the common equity tier 1 capital ratio target range of 13-14%[36] - The company is positioned as a leading offshore RMB business bank and a major USD settlement bank in New York, capitalizing on strong ties with active markets[17]

Financial Performance - Operating income for the basic benchmark was $16.255 billion, representing a 15% increase year-on-year[4]. - Pre-tax profit for the basic benchmark was $16.318 billion, reflecting a 16% year-on-year growth[4]. - Total operating income for the year reached $16.255 billion, with a basic benchmark of $16.318 billion[21]. - The group reported a 15% increase in revenue to $16.3 billion, marking the best performance since 2014[40]. - In 2022, the company achieved a revenue growth of 15% to over $16 billion, the highest since 2014, with approximately half of the growth coming from core business expansion[51]. - The pre-tax profit increased by 15% year-on-year to $4.8 billion, despite challenges in the wealth management sector[51]. - The company reported a 31% increase in pre-tax operating profit to $4.1 billion, primarily due to revenue growth[162]. - Basic operating income rose by 19% to $10.045 billion, benefiting from interest rate increases and strong macro trading activity in financial markets[162]. Shareholder Returns - Total shareholder return increased by 41%, up 43 percentage points[4]. - The total dividend was increased by 50% to $0.18 per share, with a new share buyback plan of $1 billion announced[40]. - The tangible shareholder equity return reached 8%, with a target to increase it to nearly 10% in 2023 and over 11% in 2024[51]. - The company aims to provide at least $5 billion in tangible shareholder returns by the end of 2024[40]. - Over $5 billion will be sustainably distributed to shareholders from 2022 to 2024, compared to $2.8 billion in 2022[92]. Capital and Liquidity - The common equity tier 1 capital ratio reached 14.0%, at the top end of the target range of 13-14%[4]. - The group has a strong liquidity position and robust capital levels, with asset quality remaining high[40]. - The common equity tier 1 capital ratio was 14.0%, positioned at the high end of the target range of 13-14%[47]. - The common equity tier 1 capital ratio reached 14%, at the top end of the group's target range of 13-14%[100]. Sustainability and Social Responsibility - The bank has achieved 85.7% of its sustainability goals, an increase of 2.8 percentage points[4]. - The company facilitated sustainable financing of $23.4 billion in 2022, aiming for $30 billion by 2030[41]. - The company is committed to achieving net-zero financing emissions by 2050, supporting a fair transition[41]. - The company aims to promote $300 billion in sustainable financing by 2030, having already facilitated $48 billion in the past 21 months[58]. - The company is committed to achieving net-zero emissions and enhancing community participation as part of its strategic focus[118]. Market Presence and Customer Base - The bank serves over 10 million personal and small business customers, focusing on affluent and emerging affluent clients in rapidly developing cities[15]. - The Asia region generated $11.213 billion in operating income, contributing the highest revenue, followed by Africa and the Middle East at $2.606 billion[22]. - The group operates in 59 markets and serves clients in an additional 64 markets, focusing on high-growth emerging markets[28]. - Trust Bank in Singapore attracted 450,000 customers within the first five months of its launch[41]. - Mox bank achieved a customer base of over 400,000, doubling year-on-year, with an average of 3.1 products per customer[180]. Strategic Initiatives and Innovation - The company continues to invest in digital and sustainable business capabilities to drive sustainable growth[58]. - The company aims to become a leading digital banking platform by 2025, focusing on four strategic priorities: network business, affluent client business, mass retail banking, and sustainability[118]. - The company has established new digital partnerships in China, India, and Vietnam to enhance banking experiences for small businesses[100]. - The company plans to achieve 50% of its revenue from new business through a three-pronged innovation approach, including digital transformation and establishing new business models[120]. - The company launched Trade Track-It, a digital trade transaction portal, allowing customers to view their global trade transactions end-to-end[148]. Economic Outlook and Challenges - The global GDP growth slowed to approximately 3.4% in 2022, down from 6.0% in 2021, primarily due to rising inflation and tightening monetary policies[66]. - Global growth is expected to weaken to 2.5% in 2023, with the US projected to contract by 0.2% and the UK by 0.5%[68]. - Inflationary pressures and a tight labor market may lead to stagflation becoming a primary concern for central banks in the coming quarters[69]. - The tightening of monetary policy in 2022 is expected to have a delayed impact, with several central banks likely to raise interest rates further[79]. - The US and Eurozone are facing high risks of economic contraction in the first half of 2023, with significant declines in growth anticipated due to high inflation and central bank tightening measures[79].

Financial Performance - Operating income reached $16.255 billion, representing a 15% increase on a basic basis [4] - The return on tangible equity was 8.0%, an increase of 120 basis points on a basic basis [4] - The common equity tier 1 capital ratio stood at 14.0%, at the top end of the target range of 13-14% [4] - Total shareholder return increased by 41%, up 43 percentage points [4] - The company reported a 15% increase in revenue to 16.3 billion, the best performance since 2014, with a pre-tax basic profit also rising by 15% to 4.8 billion [41] - The tangible shareholder equity return increased to 8%, up 120 basis points year-on-year, with a target to exceed 11% by 2024 [41] - The total dividend has been increased by 50% to 18 cents per share, with a new share buyback plan of 1 billion announced [41] - The pre-tax profit increased by 15% to $4.8 billion, demonstrating effective strategy execution and improved shareholder returns, with a tangible equity return of 8% [53] - The company aims to increase tangible equity returns to nearly 10% in 2023 and over 11% in 2024, while also planning to return at least $5 billion in capital to shareholders by the end of 2024 [53] - The company achieved a positive income-to-cost growth differential of 6% in 2022, with a target of approximately 3% for 2023 and 2024 [54] Market Presence and Strategy - The bank serves over 10 million personal and small business customers, focusing on affluent and emerging affluent clients in rapidly developing cities [16] - The company operates in 21 markets in Asia, with Hong Kong and Singapore being the highest revenue contributors [23] - The company operates in 59 markets and provides services to an additional 64 markets [29] - The company aims to connect high-growth emerging markets in Asia, Africa, and the Middle East with developed economies in Europe and the Americas [40] - The company is focused on three strategic positions: accelerating zero emissions, reshaping globalization, and enhancing community engagement, aligning with its long-term business strategy [54] - The company is targeting high-return and high-growth markets to expand its international banking network [135] Sustainable Development and Innovation - The bank achieved 85.7% of its sustainable development goals, an increase of 2.8 percentage points [5] - The company facilitated sustainable financing of $23.4 billion in 2022, aiming for $30 billion by 2030 [42] - The company aims to achieve net-zero financing emissions by 2050, supporting a fair transition without hindering growth in emerging markets [42] - The company is committed to achieving net-zero emissions in operations by 2025 and in financing by 2050, with a roadmap approved by shareholders [60] - The company has implemented a sustainable development director role to enhance its response to climate challenges and opportunities [60] - The company is focused on supporting small and medium enterprises through digital channels and enhancing access to loans in Kenya [81] - The company promotes innovation and investment in disruptive financial technologies, with over 30 venture capital firms, including two cloud-native digital banks [86] Customer Engagement and Digital Banking - Trust Bank, launched in partnership with FairPrice Group in Singapore, attracted 450,000 customers within the first five months [42] - The company launched a digital bank, Trust, in Singapore and expanded its venture capital reporting structure to enhance transparency in technology and innovation investments [94] - Mox, a digital bank, achieved a customer base of over 400,000, doubling year-on-year, with an average of 3.1 products per customer [184] - The customer satisfaction index improved to 48.1% in 2022, up from 43.1% in 2021 [98] - The online application for retail products increased from 38% in 2020 to 48% by the end of 2022 [175] - The company introduced Trade Track-It, a digital trade transaction portal for real-time visibility of global trade transactions [155] Economic Outlook and Challenges - The global GDP growth slowed to approximately 3.4% in 2022, down from 6.0% in 2021, primarily due to rising inflation and tightening monetary policies [68] - Global growth is expected to slow to 2.5% in 2023, with the US projected to contract by 0.2% and the UK by 0.5% [70] - The tightening of fiscal policies in many economies may hinder growth, as public debt remains high and government deficits persist [71] - Emerging markets face long-term growth threats from rising nationalism and protectionism, although digital transformation may provide some offsetting benefits [71] - The economic recovery in Sub-Saharan Africa is expected to be moderate, with inflation pressures from rising food and fuel prices [81] - The U.S. economy faces a high risk of contraction in the first half of 2023, while the Eurozone is projected to experience a sharp decline in annual growth due to high inflation and central bank tightening measures [81] Governance and Corporate Culture - The board has welcomed four new independent non-executive directors in 2022, enhancing diversity and governance [48] - The company emphasizes continuous improvement and innovation as part of its corporate culture [24] - The company is committed to enhancing community engagement and reshaping globalization as part of its strategic focus [1]

Financial Performance - Standard Chartered reported a significant increase in revenue, reaching $8.5 billion for the first half of 2022, representing a 10% year-over-year growth[1]. - The bank's operating profit before tax was $2.5 billion, up 15% compared to the same period last year[1]. - Revenue increased by 10% year-on-year for the first half of 2022, with a quarterly increase of 11% in Q2[2]. - Operating income for the first half of 2022 was HKD 8,200 million, an increase of 8% compared to HKD 7,618 million in the same period of 2021[3]. - Profit before tax increased to HKD 2,772 million, representing an 8% growth compared to HKD 2,559 million in the same period last year[15]. - Basic operating income rose to HKD 48.77 billion, primarily due to macro business revenue growth in financial markets and positive impacts from interest rate hikes on cash management margins[35]. Customer Deposits and Loans - Customer deposits grew by 5% to $200 billion, indicating strong customer confidence and retention[1]. - The bank's loan book expanded by 7%, totaling $150 billion, driven by increased demand in Asia and Africa[1]. - Total customer loans and advances amounted to 298,728 million, a decrease of 1% from 301,066 million in the previous quarter[23]. - Net customer loans and advances stood at 293,508 million, down 1% from 295,785 million in the previous quarter[23]. Cost Management and Efficiency - Standard Chartered's cost-to-income ratio improved to 55%, down from 58% in the previous year, reflecting better operational efficiency[1]. - The cost-to-income ratio improved by 2 percentage points to 72% in personal, private, and SME banking, with total expenses reduced by $98 million[2]. - The cost-to-income ratio for personal, private, and SME banking decreased by 2 percentage points to 72%[7]. - The cost-to-income ratio improved to 64.3% in the first half of 2022, down from 66.8% in the first half of 2021, indicating enhanced operational efficiency[62]. Risk Management - The bank's non-performing loan (NPL) ratio remained stable at 1.5%, indicating effective risk management practices[1]. - Credit impairment charges were $267 million, up $314 million year-on-year, with a quarterly decrease of $133 million in Q2[2]. - The annualized loan loss rate was 15 basis points, lower than the group's mid-term guidance of 30 to 35 basis points[23]. - The third stage coverage ratio increased to 61%, up 3 percentage points from 58% at the end of the previous year[24]. Capital and Shareholder Returns - The bank's capital adequacy ratio stood at 16%, well above regulatory requirements, ensuring a strong financial position[1]. - The common equity tier 1 capital ratio stands at 13.9%, with a new share buyback program of $500 million announced[2]. - The bank plans to return over HKD 5 billion in capital to shareholders over the next three years[4]. - The company plans to return over $5 billion to shareholders over the next three years, having completed $750 million in share buybacks this year[9]. Strategic Initiatives - The bank plans to invest $1 billion in technology and digital transformation over the next three years to enhance customer experience[1]. - Standard Chartered is exploring potential acquisitions in emerging markets to bolster its growth strategy[1]. - The company is investing $50 million in onshore and offshore business capabilities as part of a $300 million three-year investment plan[8]. - The group aims to achieve net-zero emissions by 2050, with a mid-term target set for 2030 in the most carbon-intensive sectors, supported by a funding commitment of $300 billion[64]. Market and Economic Outlook - The group is closely monitoring the impact of geopolitical tensions on its business, including stress testing scenarios related to global trade and economic growth slowdown[75]. - The ongoing Russia-Ukraine war has become a major issue, influencing multiple emerging and localized risks, with potential impacts on global order and geopolitical aggression[74]. - China's economic downturn and zero-COVID policy are expected to negatively impact global supply chains and GDP forecasts for 2022, particularly affecting sectors like real estate and technology[76]. Digital Transformation and Innovation - The company is focusing on digitalization and technology development as key agenda items to adapt to new business developments and asset classes[64]. - The company is enhancing its digital capabilities in personal, private, and SME banking, particularly in account opening, sales, and marketing[79]. - The company has launched the Future Workplace Now (FWN) hybrid working model, covering 68% of the group across 28 markets[80].