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

Financial Data and Key Metrics Changes - Third quarter income reached $4.4 billion, up 7% year-on-year, primarily due to higher interest rates [13] - Net interest income (NII) was $2.4 billion, reflecting a 20% increase, driven by strong performances in cash management and retail deposits [13] - Normalized net interest margin (NIM) increased by 24 basis points to 167 basis points after adjustments [13] - Year-to-date income is up 15%, with full-year growth expected in the range of 12% to 14% [17] - Credit impairments rose to $294 million, up $62 million, mainly due to charges related to China commercial real estate exposures [15][43] Business Line Data and Key Metrics Changes - Cash management income surged 61%, and deposits increased by 50% due to higher interest rates [27] - Trade income decreased by 2% due to lower volumes, particularly in China and Hong Kong [27] - Lending income fell by 26%, primarily due to lower origination volumes [28] - Wealth Management income rose 18%, with all main product lines showing growth [33] - Financial Markets income was down 8% year-on-year, attributed to lower market volatility compared to a strong prior year [30] Market Data and Key Metrics Changes - Income from the China business was $2.5 billion, up 25%, with nearly 50% growth from offshore activities [39] - Year-to-date income in Singapore and Hong Kong increased by 31% and 25%, respectively [36] - Income in Africa and the Middle East rose by 30%, with operating profit up 54% year-to-date [37] Company Strategy and Development Direction - The company aims to capture trade investment and wealth flows from the ongoing opening of China's economy [8] - Focus areas include cross-border flows and new economy industries, particularly in Greater Bay areas [8] - The strategy emphasizes sustainable finance and digital banking initiatives to support future growth [3][42] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains mixed, with volatility in markets and shifting inflation expectations [4] - The company remains confident in achieving a 10% return on tangible equity (RoTE) for 2023 despite challenges in the commercial real estate sector [2][55] - Management expressed optimism about growth prospects in Asia, expecting GDP growth above 5% [9] Other Important Information - The company took a $697 million impairment charge related to its investment in Bohai Bank due to reduced net interest income [16] - The effective tax rate is expected to be around 30% for the full year, influenced by increased rates-driven losses [15] Q&A Session Summary Question: Inquiry on net interest margins and LCR management - Management explained that LCR was normalized to around 156% and will continue to be adjusted [58][59] - They expect higher yields in asset markets due to the "higher for longer" interest rate environment [60][61] Question: Clarification on NIM adjustments and hedging policy - A one-off adjustment in NIM was due to a system migration that corrected prior quarter data [65] - Management discussed their hedging strategy, indicating plans to replace retiring hedges to lock in higher rates [66][67] Question: Loan growth outlook and corporate center loans - The decline in loans was primarily due to treasury positions, with underlying growth of 2% [73][74] - Management anticipates increased demand for credit over the next 15 months [75] Question: Concerns about Ventures generating negative deposit income - Negative deposit income is attributed to promotional efforts to attract customers, expected to improve over time [78] Question: Increase in early alerts and NIM trajectory - Early alerts increased due to sovereign concerns, but overall credit quality remains stable [81] - NIM is expected to trend slightly higher in Q4, with guidance for 2024 remaining at around 175 basis points [82][83]

standard chartered l 3Q'23 Results 26th October 2023 Contents Bill Winters Andy Halford Appendix Group Chief Executive Opening remarks . Group Chief Financial Officer Group performance . Strategic actions progress; macroeconomic variables; interest rate assumptions; China CRE; China and Hong Kong portfolio; sovereigns; Bohai; guidance details Liquidity and balance sheet information Notes, abbreviated terms and important notice W 3 4 20 29 35 2 Opening remarks | --- | --- | |-------|------------------------- ...

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

Financial Data and Key Metrics Changes - Total income for Q2 2023 was $4.6 billion, up 24% year-on-year on a constant currency basis, marking the eighth consecutive quarter of top-line growth [3][4] - Underlying profit before tax for Q2 was $1.6 billion, up 32% year-on-year, with a return on tangible equity (RoTE) of 12.1% [5][8] - For the first half of 2023, total income increased by 18% to $9 billion, with a RoTE of 12.0%, up three percentage points year-on-year [6][8] Business Line Data and Key Metrics Changes - Wealth Management income was up 10% year-on-year in Q2, marking the first quarter of growth after five quarters of declines [4] - Financial Markets delivered record income of $2.8 billion in Q2, up 15% year-on-year [4][17] - CCIB (Corporate, Commercial & Institutional Banking) income was $5.8 billion, up 33%, while CPBB (Consumer, Private & Business Banking) income rose 30% to $3.6 billion [24] Market Data and Key Metrics Changes - The China offshore business saw strong growth, up around 60% in the first half of 2023 [7] - Cross-border income in CCIB was up 44% to $3.4 billion, with significant growth in Asia and Europe [25] - The Asia region delivered record first-half income and a RoTE of 19%, with 11 markets achieving record income [27] Company Strategy and Development Direction - The company is focused on capturing structural growth opportunities in Asia, with GDP growth in the region expected to exceed 5% [49][50] - Strategic investments in Financial Markets and Wealth Management are expected to drive long-term growth [30][69] - The company aims to mobilize $300 billion of sustainable finance by 2030, with $65 billion delivered so far [70][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for most markets despite recent challenges, particularly in Asia [48] - The company expects to see continued growth in regional trade flows and a reconfiguration of supply chains [51] - Credit impairment charges are expected to remain low, with a full-year loan loss rate projected between 17 and 25 basis points [46] Other Important Information - The CET1 ratio was 14.0%, at the top of the target range, with a $1 billion share buyback announced [9][43] - The company upgraded its 2023 income growth guidance to 12% to 14% at constant FX [45] - The Ventures portfolio, including digital banks Mox and Trust, is on a strong growth trajectory, with profitability expected in 2024 and 2025 respectively [67][68] Q&A Session Summary Question: Full-year 10% RoTE guidance and moving parts for Q4 - Management acknowledged the strong first half but noted that the second half typically sees lower RoTE due to seasonal factors and potential credit impairments [76][79] Question: Expectations for 2024 guidance based on deposit performance - Management expressed satisfaction with deposit growth and noted that while they do not provide specific guidance for 2024, the current performance suggests a positive outlook [81][82] Question: Sustainability of Financial Markets revenue growth - Management highlighted structural investments that support steady growth in Financial Markets, with a focus on flow income and the ability to capitalize on market volatility [90]

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

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

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

Standard Chartered PLC (OTCPK:SCBFF) Q1 2023 Earnings Conference Call April 26, 2023 3:00 AM ET Company Participants William Winters - CEO Andrew Halford - CFO Gregg Powell - Investor Relations Conference Call Participants Guy Stebbings - BNP Paribas Joseph Dickerson - Jefferies Alastair Ryan - Bank of America Perlie Mong - KBW Aman Rakkar - Barclays Andrew Coombs - Citi Robert Noble - Deutsche Bank Thomas Rayner - Numis Gurpreet Sahi - Goldman Sachs Operator Good day, and welcome to the Standard Chartered ...

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