CONFIDENTIAL 1Q'22 Results Presentation 28 April 2022 CONFIDENTIAL | --- | --- | --- | |-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

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 Data and Key Metrics Changes - The full year operating income for 2021 was $14.7 billion, broadly flat compared to 2020, despite absorbing $700 million of interest rate headwinds [6][10] - Normalized net interest margin stabilized, with a return on tangible equity of 6%, double that of the prior year [9][10] - Underlying operating profit increased by 61% on a constant currency basis to $3.9 billion [8] - Credit impairment charges remained low at $263 million, reflecting improved credit quality [22][24] Business Line Data and Key Metrics Changes - Wealth Management income increased by over $200 million or 11%, contributing to strong performance [12] - Corporate income was down 1%, primarily due to cash management business impacted by interest rates [17] - Consumer income was up 1%, driven by growth in wealth management and retail products [18] Market Data and Key Metrics Changes - Asia region income was up 1%, with operating profit at $3.1 billion and returns up 150 basis points to 9.5% [18] - Africa and Middle East region income increased by 3%, with profits reaching $0.9 billion, the highest since 2015 [19] - Europe and Americas saw a 4% increase in income and a 67% rise in operating profits [19] Company Strategy and Development Direction - The company aims to achieve a 10% return on tangible equity by 2024, focusing on improving returns in low-returning risk-weighted assets [4][36] - Strategic focus remains on cross-border network business, affluent client offerings, and sustainability [35] - Plans to invest $300 million in China to enhance onshore and offshore capabilities, targeting a doubling of profit contribution from China [36][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to top line growth, with expectations of 5% to 7% income growth in 2022 [28][39] - Acknowledgment of uncertainties due to geopolitical situations and COVID-19, but optimism about the underlying income run rate [28][42] - Anticipation of gradual increases in impairments as they normalize from exceptionally low levels [30] Other Important Information - The company announced a $750 million share buyback and increased the full year dividend to $0.12 per share, a one-third increase [10][26] - The company plans to reduce costs by $1.3 billion over three years, including a 40% reduction in retail branches [98][99] Q&A Session Summary Question: Can you repeat the details on the $1.3 billion cost reduction? - The company plans to reduce costs by $1.3 billion over three years, including a 30% reduction in floor space and a 40% reduction in retail branches [98][99] Question: What is the expected trajectory of staff costs until 2024? - The company anticipates slight increases in overall costs due to inflation, but is focused on efficiency and digital transformation to manage headcount effectively [99][100] Question: Can you provide details on the hedge's contribution to NIM improvement? - The company started hedging in late 2021, which is expected to provide a small underpinning to this year's results, with careful monitoring of rates [101]

Financial Data and Key Metrics Changes - Operating income increased by 6% year-on-year at $3.8 billion, reflecting a return to top line growth supported by strong business momentum [10][14] - Underlying profit before tax improved by 50% at constant currency to $1.1 billion [13] - Return on Tangible Equity (RoTE) was reported at 7.1% [14] Business Line Data and Key Metrics Changes - Financial Markets income rose by 4%, driven by higher foreign exchange income and commodities, despite a decline in the rates business [17] - Transaction Banking trading account grew by 13%, with intra-Asia cross-border flows contributing significantly [19] - Wealth Management income decreased by 3% on a reported basis, but increased by 6% when excluding the prior year's accelerated bancassurance bonus [19] Market Data and Key Metrics Changes - The Africa & Middle East region recorded its highest Wealth Management quarterly income in five years [20] - Credit impairment charges remained low at $107 million for the quarter, down approximately $250 million year-on-year [32] Company Strategy and Development Direction - The company is focused on digitization and sustainability, with a strong emphasis on transition and sustainable finance [5][6] - The outlook for Q4 is typically slower, but the company remains confident in achieving top line growth of 5% to 7% in 2022 and beyond [7][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing growth momentum and the ability to deliver top line growth despite potential seasonal slowdowns [7][39] - The company is closely monitoring inflationary pressures and is committed to maintaining tight cost control while investing in strategic initiatives [28][48] Other Important Information - The CET1 ratio remained strong at 14.6%, above the targeted range of 13% to 14% [14][37] - The company plans to provide updates on capital management actions and shareholder return intentions in February 2022 [14][38] Q&A Session Summary Question: Income and Costs - Inquiry about net interest income growth and balance sheet growth expectations for 2022 [43] - Management indicated that underlying balance sheet growth is encouraging and expects to maintain growth through next year [45] Question: Cost Guidance - Questions regarding inflation and cost expectations for 2022 [44] - Management acknowledged inflationary pressures but emphasized tight cost control and investment in digital initiatives [48] Question: Structured Finance and Revenue - Inquiry about the structured finance quarterly run rate and pipeline strength [53] - Management noted that structured finance can be lumpy and does not indicate a new trend [59] Question: Cash Management Revenue - Questions about the decline in cash management revenue and its causes [61] - Management clarified that the decline was primarily due to rate effects rather than volume [64] Question: Rate Sensitivity and Capital Management - Inquiry about deposit beta assumptions and capital management strategies [82] - Management explained that they are assessing rate sensitivity across various geographies and maintaining a CET1 ratio within the target range [71][94]

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].

Standard Chartered PLC (OTCPK:SCBFF) Q2 2021 Earnings Conference Call August 3, 2021 3:00 AM ET Company Participants William Winters - Group Chief Executive & Director Andrew Halford - Group CFO & Director Conference Call Participants Nicholas Lord - Morgan Stanley Omar Keenan - Crédit Suisse Yafei Tian - Citigroup Robin Down - HSBC Joseph Dickerson - Jefferies Guy Stebbings - Exane BNP Paribas Tom Rayner - Numis Securities Amandeep Rakkar - Barclays Bank Gurpreet Sahi - Goldman Sachs Group Operator Welcome ...

Financial Data and Key Metrics Changes - Income at constant currency decreased by $130 million or 3%, with business momentum recovering nearly two-thirds of the $380 million lost due to lower interest rates [12][13] - Wealth Management achieved a record quarter, up 20% year-on-year, while Financial Markets income excluding DVA increased by 7% year-on-year [13][19] - Reported underlying profit before tax improved by 18% to $1.4 billion, marking the highest quarterly profit growth in several years [16] Business Line Data and Key Metrics Changes - Wealth Management income reached $640 million, $100 million higher than the previous year, driven by improved sentiment in key Asian markets [19] - Financial Markets showed growth, particularly in credit trading, which returned to profit after a loss in the previous year [20] - Retail Products and Transaction Banking faced challenges due to lower interest rates, with trade income up 7% year-on-year but cash business at a two-year low [22] Market Data and Key Metrics Changes - Loans and advances to customers grew by $10 billion or 4% in the quarter, supported by demand in key markets [27] - The stock of high-risk assets in the corporate, commercial, and institutional banking portfolio continued to trend down [36] Company Strategy and Development Direction - The company is focused on digitalization and reducing the number of physical branches, aiming to halve the branch network to around 400 over the next five years [33] - There is a strong emphasis on Wealth Management as a key strategic area, with plans to expand product offerings and improve client services [28][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for the remainder of the year, expecting income to stabilize and grow in the second half [30][44] - The company remains cautious about the economic situation in India and other markets, which may impact future performance [101] Other Important Information - The CET1 ratio stands at 14%, at the top of the target range, allowing for further business growth and shareholder returns [41] - The company is preparing for a more robust carbon market and has made progress in sustainable finance initiatives [8] Q&A Session Summary Question: Asset quality and loan losses outlook - Management noted a significant decrease in early alerts and stable stage 1 and 2 credit items, indicating a positive outlook for low loan losses [49][50] Question: Branch network optimization - The company plans to continue reducing branches as customer behavior shifts towards digital banking, with a target of around 400 branches [52] Question: Wealth Management performance and future expectations - Management is optimistic about Wealth Management growth, noting strong client acquisition and potential for rebound as markets reopen [56][61] Question: Revenue sustainability and market conditions - Management acknowledged that Q1 performance was influenced by favorable market conditions, but emphasized the importance of consistent client growth for future sustainability [71][72] Question: Tax rate and implications - The tax rate was lower due to increased profitability and a favorable mix of profits from lower tax rate countries, with expectations to remain around 30% for the full year [89][90]

1Q'21 Results Presentation 29 April 2021 YI tandard charcerea CONFIDENTIAL Economic recovery advanced in many of our markets in 1Q'21 We are well positioned to support our clients, colleagues and communities | --- | |-------| | | | | | → | | | | | | | | | | | | --- | --- | |-------|----------------------------------------------------------------------------| | | • We delivered a strong performance in 1Q'21 | | | o Record quarter in Wealth Management 1 ; Financial Markets ex-DVA up 7% | | 1Q'21 | o Loans and ...

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].

Standard Chartered PLC (OTCPK:SCBFF) Q4 2020 Earnings Conference Call February 25, 2021 3:00 AM ET Company Participants William Winters - Chief Executive Officer Andrew Halford - Chief Financial Officer Conference Call Participants Ronit Ghose - Citigroup Nick Lord - Morgan Stanley Thomas Rayner - Numis Securities Limited Manus Costello - Autonomous Guy Stebbings - Exane BNP Paribas Aman Rakkar - Barclays Fahed Kunwar - Redburn Edward Firth - Keefe, Bruyette & Woods Limited Joseph Dickerson - Jefferies Will ...