Financial Performance - Operating income totaled $14.713 billion, with a basic benchmark of $14.701 billion[17] - Pre-tax profit was $3.896 billion, representing a 55% increase from the basic benchmark of $3.347 billion[12] - The return on tangible equity was 6.0%, an increase of 300 basis points from the previous year[12] - Earnings per share were 76.2 cents, up from 40.1 cents in the previous year[12] - The total shareholder return for 2021 was +32.6%, a significant improvement compared to -34.6% in 2020[59] - The company plans to return over 5 billion to shareholders over the next three years through dividends and share buybacks[55] - A final dividend of 2.77 billion, or 9 cents per share, was proposed, representing a one-third increase compared to 2020[54] - The company reported a 67% increase in pre-tax profit to $644 million, driven by revenue growth and reduced impairment[176] - Profit before tax increased by 108% to 3,347 million, with net profit for the year rising to 2,313 million, compared to 751 million in the previous year[186] Capital and Liquidity - The common equity tier 1 capital ratio stood at 14.1%, exceeding the target range of 13-14%[12] - The company maintained a strong capital position with total assets of $828 billion[111] - The company's common equity tier 1 capital ratio stands at 14.1%, expected to adjust to 13.5% after upcoming regulatory changes[181] - The group maintains high liquidity and capital adequacy, preparing well for the coming year[71] Sustainable Development and Environmental Goals - The company announced a net zero emissions roadmap, aiming to reduce financed emissions and allocate 300 billion for green and climate transition financing by 2030[57] - The company aims to achieve net-zero carbon emissions in its operations by 2025 and in its financing activities by 2050[129] - The company plans to mobilize $300 billion for green and transition financing from 2021 to 2030 to support the transition to net-zero[137] - The company is committed to supporting 500,000 businesses to improve working and environmental standards, promoting fairer economic growth[140] - The company has set a target to reach 82.9% of its sustainable development goals, up from 78.4% in 2020, while reducing its carbon footprint by 27%[128] Customer and Market Engagement - The business serves over 22,000 clients in 49 markets, supporting demand for transaction banking and corporate financing[19] - The personal, private, and SME banking segment serves over 9 million individual and small business clients, focusing on affluent and emerging affluent customers[20] - The group operates in 59 markets and provides services to an additional 83 markets[44] - The group has a strong presence in Sub-Saharan Africa, with the most operating markets among international banking groups[46] - The partnership with Bukalapak aims to provide digital financial services to 17.1 million micro and small enterprises and over 110 million individual users in Indonesia[68] Digital Transformation and Innovation - The company invested in digital transformation, with over 10,000 engineers working on scalable technology solutions[111] - The introduction of the My RM app aims to enhance service for affluent clients in Singapore, doubling the number of relationship managers[97] - The company has established a unique business network connecting emerging high-growth markets with more mature economies[41] - The average time from approval to technology launch has improved to 7.6 weeks from 12.0 weeks in 2020[127] Risk Management and Asset Quality - The overall asset quality is strong, and the company is optimistic about its recovery trajectory[70] - The company emphasizes effective risk management to ensure sustainable business development[107] - The risk-weighted assets for the company were $163 billion, with a reduction in low-return customer risk-weighted assets from 19.5% in 2020 to 17.8% in 2021[143][144] - Total credit impairment decreased to 263 million, down 2 billion from the previous year, reflecting a significant improvement[198] Economic Outlook - The global economic growth is expected to continue, with Asia remaining the fastest-growing region[70] - The Eurozone is expected to rebound by 4.0% in 2022, outperforming the US's anticipated growth of 3.4%[92] - The economic recovery in Hong Kong is forecasted at 2.3% for 2022, bolstered by the normalization of global trade[93] - Emerging markets may face permanent economic output losses due to the pandemic, making it harder to catch up with developed markets[90] Employee and Community Engagement - The company has supported over 300,000 young people through the Futuremakers program, enhancing their education and employment capabilities[62] - The company continues to invest in employee skills and innovation, with 73% of employees in 28 markets signing hybrid work contracts in 2021[130] - The board is committed to maintaining a strong governance culture, focusing on sustainability and the company's net zero emissions goals[61]

Financial Performance - Standard Chartered reported a significant increase in half-year profits, with a net profit of $1.5 billion, representing a 25% year-on-year growth[1]. - The bank's total income rose to $8.5 billion, up 10% compared to the previous year, driven by strong performance in its corporate and institutional banking segments[1]. - The group's pre-tax profit increased by 37% year-on-year to 2.7 billion, benefiting from improved loan impairment conditions and strong core business momentum[5]. - The tangible shareholder equity return rose by 330 basis points to 9.3%[5]. - Profit attributable to ordinary shareholders rose by 60% to HKD 1,826 million from HKD 1,138 million year-on-year[6]. - The profit attributable to the period was HKD 1,928 million, an increase of 81% compared to HKD 1,066 million in the previous year[13]. - The group reported a pre-tax profit of £2,559 million for the first half of 2021, compared to £1,627 million in the same period of 2020[32]. - The profit before tax increased by 42% to 1.821 billion, primarily due to a reduction in credit impairment, partially offset by decreased income and increased expenses[35]. Customer Deposits and Loans - Customer deposits increased by 15% to $100 billion, reflecting strong client confidence and market expansion efforts[1]. - The bank's loan book grew by 8% to $200 billion, with a focus on sustainable financing and green initiatives[1]. - Total customer loans and advances reached 303,982 million, a 2% increase compared to 298,297 million in the same period last year[23]. - Customer loans and advances increased by 6% to 298 billion, benefiting from double-digit growth in trade and single-digit growth in corporate lending since December 31, 2020[27]. - The loan-to-deposit ratio rose from 61.1% on December 31, 2020, to 64.0%, while the liquidity coverage ratio increased from 143% to 146%[27]. Operational Efficiency - The bank's cost-to-income ratio improved to 55%, down from 58% in the previous year, indicating enhanced operational efficiency[1]. - The cost-to-income ratio rose by 7 percentage points to 67%, reflecting the impact of lower interest rates and increased expenses[14]. - The cost-to-income ratio for corporate, commercial, and institutional banking was 60.2%, while for personal, private, and SME banking it was 70.7%[32]. - The cost-to-income ratio increased to 60.2%, up from 51.2%, indicating rising operational costs[34]. Credit Impairment and Risk Management - The bank's risk management framework remains robust, with a non-performing loan ratio of 1.5%, indicating strong asset quality[1]. - Credit impairment net reversal was 470 million, down 1.6 billion year-on-year[5]. - The total credit impairment charge was $(51) million for the first half of 2021, significantly reduced from $1,576 million in the same period of 2020[72]. - The credit impairment for corporate, commercial, and institutional banking was $(136) million for the first half of 2021, compared to $1,115 million in the same period of 2020[72]. - The expected credit loss provisions were (5,979) million, a 4% decrease from (6,213) million in the previous year[23]. Strategic Initiatives and Investments - Standard Chartered plans to invest $500 million in technology and digital transformation over the next three years to enhance customer experience and operational capabilities[1]. - The bank is exploring strategic acquisitions in emerging markets to bolster its market presence and service offerings[1]. - New product launches in wealth management and digital banking are anticipated to drive further customer engagement and revenue growth[1]. - The group aims to achieve net zero emissions by 2050 or earlier, focusing on reducing carbon emissions in emerging markets without hindering development[11]. Regional Performance - Profit from the Africa and Middle East region grew over fivefold to HKD 475 million, marking the best half-year performance in five years[19]. - Revenue from Asia decreased by 1%, but profit increased by 41% due to lower credit impairment[19]. - Operating income in Africa and the Middle East remained stable at 1.250 billion, with a 1% increase on a constant currency basis, offsetting the impact of interest rate reductions[43]. Digital Transformation and Customer Engagement - Digital sales transactions in retail banking reached 71%, with customer usage of digital services accelerating to 62%, up 6 percentage points[5]. - The bank's digital services were launched in 46 markets, with digital transactions increasing by 7 percentage points to 48%[10]. - The Mox virtual bank in Hong Kong has attracted a significant number of young new customers, with continuous growth in balances[10]. Sustainability and Community Engagement - The group plans to positively impact the lives of 1 billion people through enhanced community engagement and support for women and micro-enterprises[11]. - The group is committed to supporting clients' carbon reduction efforts by developing transition frameworks and sustainable financing solutions[66]. - The group aims to become a leader in sustainable and responsible banking, expanding its reputation risk categories to include environmental, social, and governance (ESG) risks[68].

Financial Performance - The group achieved a return on tangible equity of 3.0%, which is an increase of 340 basis points compared to the previous benchmark [8]. - Operating income reached $14.76 billion, reflecting a 3% increase based on the basic benchmark [8]. - The common equity tier 1 capital ratio stood at 14.4%, exceeding the target range of 13-14% [8]. - The total shareholder return for 2020 was negative 34.6%, reflecting a decrease in profit forecasts and the cancellation of dividend payments due to regulatory requirements during the COVID-19 challenges [48]. - The company recorded quarterly revenue growth between 4% to 8% from the end of 2018 to mid-2020, despite the impact of COVID-19, with positive revenue and cost growth each quarter [53]. - The company reported a pre-tax profit of 18.41 billion, with a tangible equity return of 6.6% [103]. - Basic operating income decreased by 3% to 14,765 million in 2020 [150]. - Pre-tax profit decreased by 40% to 2,508 million, reflecting significant impacts from restructuring and goodwill impairment [149]. COVID-19 Response - The group provided $1 billion in financing at cost price to support businesses supplying anti-epidemic products and services during the COVID-19 pandemic [5]. - A global charity fund of $50 million was established to provide emergency support and long-term assistance to the most affected communities [5]. - The company provided $1 billion in credit support to customers for producing goods and services to combat the pandemic [188]. - The charity fund has provided support to communities in Malaysia, Zambia, and the UK during the pandemic [40]. - The company launched a $50 million global fund to assist individuals affected by the COVID-19 pandemic, with an immediate donation of $25 million [188]. - The company has implemented multiple comprehensive support plans for retail and corporate clients, including temporary loan repayment and interest waivers, to address the impacts of the COVID-19 pandemic [176]. Strategic Initiatives - The group is focused on sustainable finance and has set 11 sustainable development goals to align with the United Nations' objectives [7]. - The company plans to invest $1.6 billion in regulatory, strategic, network, and system enhancements in 2020, maintaining a focus on expanding its capabilities and influence [54]. - The company aims to gradually increase the annual dividend per share as it executes its strategy towards a 10% tangible equity return target [46]. - The company aims to achieve a 10% return on tangible equity, supported by its updated strategic focus [190]. - The company plans to focus on high-return and high-growth markets, aiming to lead in emerging market corporate banking [92]. Digital Transformation - The active usage rate of digital services among retail banking customers increased to 104% in 2020, up from 52% in 2019 and 2% in 2018 [54]. - The company launched its virtual bank Mox in Hong Kong and is preparing to introduce a "banking-as-a-service" model in Indonesia [57]. - Digital account opening rate rose to 80%, up from approximately 30% in 2019, while digital service usage increased to 70% from 25% [90]. - The company aims to achieve a 95% digital platform transition for customers by 2023 [90]. - The company launched a new virtual bank, Mox, which had 66,000 customers and recorded deposits of HKD 5.2 billion by the end of 2020 [90]. Market Presence - The group operates in 59 markets globally and provides services to clients in an additional 85 markets, being the only international bank with a presence in all ten ASEAN countries [26]. - The Greater China and North Asia region contributed 41% of the group's revenue in 2020, making it the largest market, serving clients in Hong Kong, mainland China, Japan, South Korea, Macau, and Taiwan [28]. - The company has been active in all ten ASEAN countries and has a strong presence in major South Asian markets, positioning itself as a preferred banking partner [26]. - The company has been operating in Africa and the Middle East for over 160 years, with a significant presence in 25 markets, including the UAE, Nigeria, and Kenya [15]. Governance and Compliance - The board welcomed new independent non-executive director Maria Ramos, enhancing its governance and expertise in the financial services sector [49]. - The company has improved its governance across various business areas, particularly in compliance with local regulatory requirements [169]. - The company has established measures to control operational risks, ensuring that operational losses do not significantly harm its business [175]. - The company has implemented enhanced third-party risk management measures following an internal review completed in Q4 2020 [177]. Sustainability and ESG - The company aims to achieve net-zero carbon emissions by 2050, integrating sustainable finance into its core value proposition [101]. - The company is committed to being a sustainable, innovative, and customer-centric bank while supporting clients in the transition to a low-carbon economy [168]. - The company has made significant contributions to local communities through its COVID-19 charity fund, raising millions from global colleagues [43]. - The company is focused on sustainable finance solutions and has integrated environmental, social, and governance risk management into its reputation risk framework [168]. Employee Engagement and Culture - The net promoter score for employees reached +17.5, an increase of 6 percentage points compared to +11.5 in 2019 [86]. - Employee engagement survey participation was 91% among 74,566 employees and 71% among 3,599 agency workers [200]. - The percentage of women in senior positions is currently 29.5%, with a mid-term target of 30% by December 2025 [196]. - The company aims to raise its "Cultural Inclusion" score to 84.5% by December 2024, with a current score of 84.5% [195].

Financial Performance - The group reported a 5% increase in the cost-to-income ratio, rising to 59% (excluding debt value adjustments) [8] - Overall operating profit from the four major markets increased by 7% [8] - Revenue increased by 5% to 80 billion, with a 7% increase on a constant currency basis [9] - Expenses decreased by 5% to 47 billion, with a 2% decrease on a constant currency basis [9] - Earnings per share decreased by 13.2 cents or 27% to 35.9 cents [9] - The outlook for the second half of 2020 indicates potential revenue decline due to economic volatility [10] - The company reported a significant improvement in pre-provision operating profit due to strategic focus, product and regional diversification, and strict cost control, despite a decline in basic profit due to increased provisions for potential loan losses caused by the pandemic [13] - The company reported a 7% increase in overall operating profit despite the challenging environment caused by the COVID-19 pandemic and declining oil prices [18] - Profit before tax decreased by 25% to HKD 1,955 million, impacted by increased restructuring and regulatory provisions [24] - The total pre-tax profit for the first half of 2020 was 1,627 million, a decrease from 1,955 million in the first half of 2019, representing a decline of about 16.7% [68] Credit Impairment and Risk Management - Despite a significant increase in impairment charges, the group still recorded a profit [7] - Credit impairment increased significantly year-on-year, with first and second stage impairments rising by 586 million to 668 million [9] - The total credit impairment charge for the first half of 2020 was HKD 15.67 billion, a significant increase from HKD 2.54 billion in the same period of 2019 [80] - The third stage credit impairment increased by HKD 7.27 billion, with three-quarters of this related to corporate and institutional banking [80] - The expected credit loss provisions were (6.513) billion, an increase of 5% compared to the previous quarter [30] - The credit quality of the portfolio is under pressure, with expectations of further deterioration in the short-term macroeconomic outlook [31] - The total amount of Stage 3 customer loans and advances reached 8.8 billion, a 19% increase from December 31, 2019, primarily due to inflows in corporate and institutional banking [31] - The total credit impairment for Stage 1 was not significant, indicating a stable outlook for the company's credit risk management [104] Capital and Liquidity - The group maintained a strong capital position with one of the highest common equity tier 1 capital ratios in years [7] - The common equity tier 1 capital ratio increased by 90 basis points to 14.3% [9] - The liquidity coverage ratio improved to 149%, indicating strong liquidity management [23] - The group's common equity tier 1 capital ratio increased to 14.3%, exceeding the interim target range [23] - The group’s common equity tier 1 capital ratio increased by 50 basis points to 14.3%, primarily due to profits and restrictions on distributions [82] - The liquidity coverage ratio rose to 149%, up from 144% in 2019, reflecting a decrease in net outflows [82] Customer Engagement and Digital Transformation - Digital customer engagement improved by 12 percentage points to 36%, with a virtual bank in Hong Kong set to launch soon [8] - The digital channels have been significantly optimized, allowing the company to maintain client connections during social distancing measures [18] - The group is focusing on enhancing its digital capabilities in retail banking, particularly in customer acquisition, sales, and marketing, in response to changing customer expectations due to the pandemic [90] Community Support and Sustainable Finance - The group has introduced stimulus measures aimed at sustainable recovery, reinforcing its leadership in sustainable finance [8] - The company has issued nearly 300,000 applications for loan repayment deferrals and support plans, with an approval rate of nearly 98% for voluntary plans, demonstrating commitment to assist vulnerable customer groups [14] - A financing plan of $1 billion has been launched to support businesses supplying critical pandemic-related products, with nearly half of the funding already allocated to clients across Asia, Africa, and the Middle East [14] - The company has committed to a financing pledge of $75 billion for sustainable infrastructure, renewable energy, and clean technology projects, aiming for net-zero emissions by 2030 [20] - The group aims to provide $75 billion in financing for sustainable infrastructure, renewable energy, and clean technology projects by 2024, supporting the transition to a low-carbon economy [89] Operational Efficiency and Cost Management - The company remains focused on managing expenses carefully to maintain key long-term investment projects and continue transformation to seize future opportunities [13] - The cost-to-income ratio worsened due to a decrease in income and increased impairment charges [27] - The company is focusing on enhancing productivity and has accelerated projects aimed at making the organization more streamlined and flexible [18] - The group aims to keep 2020 expenditures below $10 billion, with new sustainable efficiency measures implemented to control 2021 spending as well [39] Market Challenges and Economic Outlook - The group anticipates ongoing challenges from the COVID-19 pandemic in the coming quarters [7] - The company acknowledges the ongoing uncertainty regarding the pandemic's impact on future financial performance and is focused on controllable factors [13] - The group expects continued challenges in the market but remains focused on cost management and operational efficiency improvements [50] - The ongoing geopolitical tensions, particularly between the US and China, have led to increased risks, with a significant slowdown in global trade and economic growth [89]

Financial Performance - Operating income reached 15.271 billion, representing a 2% increase year-over-year[9] - Profit before tax was 4.172 billion, reflecting an 8% growth compared to the previous year[9] - Basic earnings per share increased to 75.7 cents, up by 14.3 cents[9] - The tangible equity return for the group reached 20.2% in 2019, an improvement from a negative 20.6% in 2018[24] - The pre-tax operating profit increased by 12% to HKD 23.18 billion, driven by revenue growth and prudent cost management[71] - Basic operating income increased to HKD 15,271 million, up 2% from HKD 14,968 million in 2018[107] - Pre-tax profit increased by 8% to HKD 4,172 million, compared to HKD 3,857 million in 2018[110] - Corporate and institutional banking profit rose by 12% to HKD 2,318 million, contributing significantly to overall pre-tax profit[110] Capital and Shareholder Returns - The common equity tier 1 capital ratio stood at 13.8%, with a 39 basis point increase, within the target range of 13%-14%[8] - Total shareholder return was 20.2%, with a detailed review available on page 7[8] - The board declared a final ordinary dividend of 20 cents per share, bringing the total dividend for 2019 to 863 million or 27 cents per share, an increase of 29% compared to 2018[30] - The company utilized 1 billion in surplus capital for share buybacks and announced an additional buyback of up to 500 million in ordinary shares due to a strong capital ratio returning to the target range of 13%-14%[30] Sustainable Development and Corporate Responsibility - The company achieved 93.1% of its sustainable development goals, marking a 2% improvement[8] - The company is focused on integrating sustainable finance across its business areas to support community inclusivity[5] - The group is committed to adapting to external changes, including geopolitical and social transformations, which have become the new normal[24] - The company aims to achieve net-zero emissions and exclusively use renewable energy by 2030, with a target to facilitate 35 billion in renewable energy projects from 2020 to 2024[34] - The "Futuremakers by Standard Chartered" program was launched to address inequality in the market, focusing on education, employment, and entrepreneurship for youth, especially girls and women[61] Market Presence and Regional Performance - The company operates in four regions and serves four customer categories, supported by nine global functional departments[10] - The Greater China and North Asia region contributed 40% of the group's total revenue in 2019[16] - Operating income in the ASEAN and South Asia region was significant, with Singapore and India being the largest markets[11] - The bank has a presence in 59 markets globally, with operations in all ten ASEAN countries[15] - Operating income in Africa and the Middle East reached 25.62 billion, with the UAE, Nigeria, and Kenya being key markets[11] Digital Transformation and Innovation - The company has been recognized as the world's best consumer digital bank by Global Finance Awards, reflecting its progress in digitalization and innovation[33] - The percentage of retail banking customers actively using digital services increased to 54% in 2019, up from 49% in 2018 and 45% in 2017[35] - The company is focusing on improving returns in four major markets, with encouraging progress in overall operating profit[33] - The company aims to enhance sustainable finance offerings to support products and services with positive social and environmental impacts[70] Risk Management and Governance - The group has reformed its risk management framework to address non-financial risk factors, enhancing its capital and liquidity strength[22] - The group has established a strong governance level, as indicated by an external review of the board's effectiveness[23] - Effective risk management is highlighted as essential for sustainable business development, combining global expertise with local insights[43] - The company aims to maintain the highest standards of integrity in combating financial crime as part of its sustainable business model[42] Employee Engagement and Diversity - Employee engagement score improved, with 71,000 employees (91%) participating in the annual survey, showing overall job satisfaction increased[159] - The gender ratio in senior positions has reached 30% female representation, reflecting progress in diversity initiatives[159] - The company aims to raise the percentage of women in senior positions to 35% by 2024 as part of its sustainability goals[167] - Over 80% of employee leaders completed the Inclusive Leadership Program aimed at fostering skills to eliminate unconscious bias[165] Economic Outlook and Challenges - Global economic growth is estimated to slow to 3.0% in 2019, down from 3.8% in 2018, with the US economy showing resilience supported by a strong labor market[39] - The company anticipates global growth to stabilize around 3% in 2020, with a projected economic growth of 5.5% in China, impacted by the COVID-19 outbreak[39] - The company expects that the ongoing global economic recovery is cyclical and remains fragile, with structural challenges persisting[39] - The company highlights that emerging markets are becoming increasingly important drivers of global growth, despite rising nationalism and protectionism posing threats to long-term growth prospects[39]

Financial Performance - Operating income for the six months ended June 30, 2019, was $7,696 million, an increase from $7,649 million for the same period in 2018[9]. - Profit before tax increased to $2,609 million compared to $2,356 million in the previous year[9]. - Basic earnings per share for the period were 49.1 cents, compared to 44.9 cents in the same period last year[9]. - The group reported a revenue of 76.96 billion with a basic benchmark of 30.80 billion, reflecting a 4% growth in revenue year-on-year at constant exchange rates[19]. - Basic profit increased by 13% compared to the previous year, indicating strong financial performance despite geopolitical uncertainties[19]. - Corporate and institutional banking revenue was $2.4 billion, representing a 9% year-on-year increase from $2.2 billion[39]. - Wealth management revenue was $1.8 billion, reflecting a 5% year-on-year growth from $1.7 billion[40]. - Pre-tax profit in key markets (India, Indonesia, South Korea, UAE) was $380 million, up 14% year-on-year from $333 million[40]. - The group's pre-tax profit increased by 11% to HKD 2.6 billion, with a fixed exchange rate increase of 13%[49]. - Operating income rose by 1% to HKD 7.7 billion, with a fixed exchange rate increase of 4%[49]. Asset and Capital Management - Total assets as of June 30, 2019, were $712,504 million, compared to $694,874 million a year earlier[9]. - The common equity tier 1 capital ratio was 13.5%, down from 14.2% in the previous year[9]. - The capital position remains robust, with a common equity tier 1 capital ratio between 13% and 14%, after accounting for a 39 basis points reduction from a $1 billion share buyback plan[14]. - Total risk-weighted assets stood at HKD 70 billion, with a 13% increase since December 2018[42]. - Risk-weighted assets improved to 320 billion, a 4% increase since December 2018[44]. - The common equity tier 1 capital ratio stood at 13.5%, within the target range of 13% to 14%[67]. - The liquidity coverage ratio decreased to 139% from 154% at the end of 2018[81]. - The liquidity coverage ratio is 139%, down from 154% in the previous year, reflecting a 15% decrease due to changes in cash flow and liabilities[161]. Credit Quality and Impairment - Credit impairment charges were $254 million, down from $293 million in the same period last year[9]. - The total credit impairment for the first half of 2019 was 254 million, a decrease of 13% compared to 293 million in the first half of 2018[123]. - The total credit impairment for the second stage as of June 30, 2019, was (21.201) billion, indicating a potential risk in this category[119]. - The total credit impaired loans amounted to 6,218 million, with corporate and institutional banking contributing 3,541 million[133]. - The average customer loan loss rate was 17 basis points, reflecting an improvement in credit quality over the past three years[79]. - The total amount of credit impairment (Stage 3) loans decreased to 6.2 billion from 6.9 billion at the end of 2018[128]. - Retail banking credit impairment charges increased by 29% to 154 million in the first half of 2019, up from 119 million in the first half of 2018[123]. - The total amount of impaired loans in the retail banking segment was 827 million HKD, with a coverage ratio of 47%[130]. Customer Loans and Deposits - Customer loans and advances reached $263,595 million, an increase from $259,331 million in the previous year[9]. - Customer deposits grew to $401,597 million, up from $382,107 million year-over-year[9]. - The total amount of loans with repayment deferral measures amounted to 1,260 million HKD as of June 30, 2019, down from 1,412 million HKD at the end of 2018[127]. - The total customer loans and advances amounted to 260,246 million, an increase from 250,922 million at the end of the previous year[164]. - The total customer deposits reached 408,487 million, up from 397,764 million at the end of the previous year[164]. Strategic Initiatives and Investments - The group aims to enhance tangible shareholder returns to over 10% by 2021, with good progress reported in the first year of the strategic plan[18]. - The company is focusing on optimizing existing advantages and developing new customer solutions, particularly in digital services, to seize market opportunities[13]. - The company plans to establish a foreign exchange electronic trading and pricing platform by early next year, facilitating transactions in 130 currencies and over 5,000 currency pairs[26]. - The company is actively investing in high-return affluent clients and wealth-related businesses to drive long-term revenue growth[22]. - The company has made significant progress in restructuring its corporate framework to enhance capital and liquidity management[26]. - The company is committed to integrating sustainability into decision-making processes and addressing significant challenges in environmental protection[15]. - The company is focusing on sustainable development and increasing financing for clients aligned with the United Nations Sustainable Development Goals[73]. Market and Economic Conditions - Geopolitical events, particularly the deterioration of US-China relations, have increased concerns regarding trade tensions and their impact on the group's operations[86]. - The macroeconomic conditions, especially the slowdown in growth in key markets led by China, have maintained risk levels similar to those at the end of 2018[86]. - The expected average GDP growth rate for China over the next five years has been slightly adjusted down from 6% to approximately 5.9%[146]. - The average five-year oil price forecast has been slightly reduced from $85 to $84 due to a slowdown in global economic expansion[146]. - The projected economic activity levels for the next five years show relatively minor changes compared to the end of last year, indicating a stable outlook despite external demand weaknesses[146]. Risk Management - The group adopts a zero-tolerance approach towards non-compliance with laws and regulations, recognizing that while non-compliance cannot be entirely avoided, efforts are made to minimize it[84]. - The group actively monitors economic trends and manages interest rate risk exposures within a clearly defined risk management framework[86]. - The company has implemented a new policy and document management system to strengthen regulatory, risk, and compliance solutions[77]. - The company continues to invest in infrastructure improvements, including risk exposure management and data quality[78]. - The company is enhancing its capabilities to ensure it remains aligned with technological trends and can quickly seize opportunities[87].

Financial Performance - The group achieved a total operating income of $14.968 billion, with corporate and institutional banking contributing $6.860 billion and retail banking contributing $5.041 billion[15]. - The Greater China and North Asia region generated an operating income of $6.157 billion, making it the largest revenue contributor for the group[18]. - The Africa and Middle East region reported an operating income of $2.604 billion, with the highest revenue markets being the UAE, Nigeria, and Kenya[18]. - Operating income for ASEAN and South Asia region reached 39.71 billion with a basic benchmark and 39.92 billion under statutory benchmark[20]. - Operating income for Europe and Americas region was 16.70 billion under basic benchmark and 16.79 billion under statutory benchmark[20]. - The board declared a final ordinary dividend of 15 cents per share, bringing the total dividend for the year to 21 cents, approximately doubling the previous year's dividend[24]. - The company reported a significant reduction in credit impairments and a substantial increase in basic profit, indicating improved business performance[24]. - The company aims to achieve double-digit returns on tangible shareholder equity by 2021 or earlier[39]. - The return on equity increased from 3.9% to 6.8%, while the tangible return on equity rose from 4.4% to 7.4%[77]. - The pre-tax profit for corporate and institutional banking was $2.072 billion, an increase of 64% year-on-year, driven by revenue growth and reduced credit impairments[74]. - Basic income for corporate and institutional banking reached $6.860 billion, up 6% year-on-year, primarily due to increased cash management and financial market income[77]. - The group's operating income increased by 5% to 14.97 billion, meeting mid-term targets, with all customer categories contributing to revenue growth[115]. Strategic Focus - The group is focused on enhancing profitability, balance sheet quality, and financial returns as part of its strategic plan initiated in 2015[9]. - The group emphasizes a commitment to sustainable economic and social development in the regions it operates, particularly in emerging markets[17]. - The company is focusing on enhancing financial returns over the next three years while navigating geopolitical uncertainties and global economic slowdowns[25]. - The company is prioritizing digital transformation and customer-centric value propositions to remain competitive against fintech and large tech firms[25]. - The company aims to enhance high-return income and efficiency in key markets such as India, South Korea, UAE, and Indonesia[42]. - The company is committed to sustainable financing, aiming to expand its sustainable financing business to create positive social, environmental, and economic impacts[43]. - The company aims to achieve a revenue increase of 5-7%, significantly higher than global economic growth forecasts, while maintaining strict cost control to achieve high operational leverage[43]. - The company is focused on balancing environmental, social, and economic needs while addressing stakeholder expectations in its operations[29]. Digital Transformation - The company is investing in blockchain-based real-time cross-border payment services and plans to introduce more projects[42]. - The company successfully launched its first digital retail bank in Côte d'Ivoire and plans to expand to Kenya and other African markets in 2019[42]. - The company has launched a comprehensive digital bank in Côte d'Ivoire and is applying for a virtual banking license in Hong Kong to enhance customer experience[72]. - Digital banking services saw an increase in active users, with 49% of clients using online or mobile banking services compared to 45% in 2017[86]. - The company is actively developing digital services and has applied for a virtual banking license in Hong Kong[106]. - Significant investments are being made in digital capabilities to provide personalized services and improve customer engagement, with a focus on data and analytics[71]. Risk Management and Compliance - The company has made significant progress in addressing past financial crime compliance issues, receiving recognition from the New York State Department of Financial Services[43]. - The company is enhancing its operational risk management and workflow processes to provide better services to customers[139]. - The company is committed to modernizing its approach to combating financial crime through public-private partnerships in the UK, US, Singapore, and Hong Kong[139]. - The company has elevated information and cybersecurity risks to a major risk category, implementing a new framework to ensure consistent management of network risks[139]. - The company is focusing on enhancing compliance infrastructure, with a multi-year plan to review and strengthen existing frameworks and procedures[139]. - The company is collaborating with fintech partners to explore new opportunities in machine learning, artificial intelligence, and data analytics[139]. Sustainability Initiatives - The company is committed to promoting sustainable economic and social development in the communities where it operates[23]. - The company launched a new public stance statement to stop financing new coal-fired power plants globally, reflecting a commitment to environmental sustainability[29]. - The company aims to reduce its carbon footprint by 36% to 121,000 tons by 2025, 55% to 84,000 tons by 2030, and 90% to 18,000 tons by 2050, based on 2017 levels of 187,936 tons[190]. - The company has established a target to provide $4 billion in funding for clean energy technologies by 2020, achieving this goal two years ahead of schedule[147]. - The company is focused on integrating sustainable finance into its decision-making processes and developing new financial products with positive social and economic impacts[177]. - The company is actively investing in community programs to promote economic and social sustainability, addressing inequalities in the market[43]. Employee Engagement and Diversity - The company employs 85,000 employees, with 46% being women, emphasizing diversity in its workforce[57]. - In 2018, over 73,000 employees (90%) participated in the annual employee engagement survey, with a participation rate of 67%[156]. - The percentage of women in senior leadership positions rose to 27.7% by the end of 2018, up from 25.7% in 2017, moving closer to the goal of 30% by 2020[171]. - The employee net promoter score increased from 5.9 in the second half of 2017 to 11.3 in the second half of 2018, indicating a better work environment[164]. - The company provided over 10,000 days of leadership and management training in 2018, with an average of three days of formal training per employee[162]. - The company was recognized as one of the best performers in gender equality in the UK by Equileap, ranking 26th globally in 2018[171]. Market Outlook - The global economic growth is expected to slow down to 3.6% in 2019, with Asia projected to grow at a strong rate of 6.1%[50]. - Concerns over trade tensions and rising oil prices may impact India's economic outlook, despite strong consumer spending supporting growth[50]. - The economic growth in the Middle East and North Africa is forecasted to slow to 2.5% in 2019, influenced by external risks and regional economic activity[53]. - The U.S. economy is expected to maintain strong momentum, supported by a robust labor market and consumer spending, although it faces vulnerabilities due to global economic conditions[53]. - China may experience a loss of economic momentum in the coming months due to escalating trade tensions and a slowdown in the real estate market[54].