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 Data and Key Metrics Changes - Operating income increased by 2% on a reported basis and 4% on a constant currency basis, with underlying operating profit at $4.2 billion, an increase of 8% reported or 10% on a constant currency basis [12][13] - Underlying earnings per share rose by 23%, with a proposed dividend per share of $0.27, reflecting a 29% year-on-year increase [13][14] - The CET1 ratio stood at 13.8%, at the higher end of the 13% to 14% range, with a RoTE of 6.4%, up 1.3 percentage points from the previous year [14][15] Business Line Data and Key Metrics Changes - Corporate and Institutional Banking reported a 5% income growth, with a RoTE of 8.5%, while Retail Banking saw a 3% increase in income and maintained a RoTE of 12.6% [23][24] - Wealth Management experienced a 12% increase in income, with assets under management growing by 14% [25] - Financial Markets had a strong year, with a reported income increase of 12% [15][20] Market Data and Key Metrics Changes - Greater China and North Asia saw flat top-line growth, with a 3% increase in profits despite macro challenges [26] - The ASEAN & Southern Asia region contributed $1 billion in operating profit, with a 6% growth in income [27] - Africa & Middle East reported a 2% decrease in income on a reported basis but a 4% increase on a constant currency basis [28] Company Strategy and Development Direction - The company is focused on digitization, having completed the rollout of digital banks across Africa and is expanding in Hong Kong [4][5] - Sustainability is a key focus, with a commitment to help clients transition to a low-carbon economy, viewing it as a significant profit opportunity [5][9] - The company aims to double its dividend by 2021 and is committed to maintaining a strong capital base [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of the coronavirus on income growth in 2020, expecting it to be slower than previously anticipated [6][44] - The company remains optimistic about its strategic positioning and underlying earnings momentum despite external challenges [78][71] - Management emphasized the importance of reskilling and developing the workforce to drive future growth [7][63] Other Important Information - The company completed a share buyback program and announced a second tranche to continue managing its capital aggressively [4][14] - The focus on climate change financing is highlighted, with a commitment of $35 billion towards climate-related investments [61][62] Q&A Session Summary Question: Impact of the virus outbreak on P&L - Management acknowledged uncertainty regarding the P&L impact from the virus, emphasizing a strong capital and liquidity position to weather the storm [76][78] Question: Revenue guidance for 2020 - Management indicated that achieving the 5% to 7% revenue growth target for 2020 would be challenging, citing strong underlying business momentum and benefits from legal entity restructuring [80] Question: Asset quality and RWAs - Management noted that the increase in CG 12 accounts was driven by sovereign downgrades, and overall credit quality remains stable despite monitoring for potential impacts from the coronavirus [82][84]

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].