Standard Chartered PLC (OTCPK:SCBFF) Q4 2022 Results Conference Call February 16, 2023 3:00 AM ET Company Participants William Winters - CEO Andrew Halford - CFO Conference Call Participants Joseph Dickerson - Jefferies Andrew Coombs - Citi Alastair Ryan - Bank of America Omar Keenan - Credit Suisse Fahed Kunwar - Redburn Rob Noble - Deutsche Bank Tom Rayner - Numis Perlie Mong - KBW Aman Rakkar - Barclays William Winters Good morning and good afternoon, everybody, and thank you for joining us at today's re ...

Standard Chartered PLC (OTCPK:SCBFF) Q3 2022 Earnings Conference Call October 26, 2022 3:00 AM ET Company Participants | --- | --- | |-----------------------------------------------------------------------------------|-------| | | | | Bill Winters – Group Chief Executive Andy Halford – Group Chief Financial Officer | | | Conference Call Participants | | | Joseph Dickerson – Jefferies | | | Robert Noble – Deutsche Bank | | | Aman Rakkar – Barclays | | | Tom Rayner – Numis | | | Omar Keenan – Credit Suisse | ...

CONFIDENTIAL 3Q'22 Results Presentation 26 October 2022 andard nartered CONFIDENTIAL 2 Opening remarks • A strong performance in 3Q'22 → Introduction Income Markets Expenses Risk Capital Conclusion o Total income up 22% at constant currency (ccy) on a normalised basis1… o … the fifth consecutive quarter of year-on-year growth o 10% positive income-to-cost jaws (ccy) o Profit before tax up 35% (ccy) o Return on tangible equity of 10.1% 3Q'22 Summary • Capital remains strong with CET1 ratio at 13.7%, in the u ...

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

Standard Chartered PLC (OTCPK:SCBFF) Q2 2022 Earnings Conference Call July 29, 2022 3:00 AM ET Company Participants Bill Winters - Chief Executive Officer Andy Halford - Chief Financial Officer Conference Call Participants Joseph Dickerson - Jefferies Omar Keenan - Credit Suisse Tom Rayner - Numis Fahed Kunwar - Redburn Robin Down - HSBC Alastair Ryan - Bank of America Nick Lord - Morgan Stanley Perlie Mong - KBW Aman Rakkar - Barclays James Invine - Societe Generale Bill Winters Good morning, and good afte ...

Financial Data and Key Metrics Changes - Profit before tax increased by 5% year-on-year, driven by a 9% growth in top line revenue and a record performance in Financial Markets, alongside a return on tangible equity of 11.1% [2][12] - Income at constant currency, excluding DVA, rose by 9%, with net interest income up by 10% or approximately $140 million compared to Q1 2021 [15][30] - Credit impairments totaled $200 million, primarily due to exposures in China commercial real estate and the sovereign downgrade of Sri Lanka [16][36] Business Line Data and Key Metrics Changes - In the Corporate Commercial and Institutional Banking (CCIB) segment, income return on risk-weighted assets improved by over 1% to 6.4% [3] - The Consumer Private and Business Banking segment added over 98,000 new mass retail partnership clients, with a goal to reduce the cost-income ratio below 60% [4] - Wealth Management income decreased by approximately $100 million or 17%, impacted by weak investor sentiment and COVID restrictions in Asia [25] Market Data and Key Metrics Changes - In the China-ASEAN trade corridor, network income grew by 35% year-on-year, indicating strong performance despite challenges [5] - Trade income increased by 6% year-on-year, with trade assets surpassing pre-pandemic levels [24] - Cash management income rose by 5% year-on-year, benefiting from the rising interest rate environment [24] Company Strategy and Development Direction - The company is refocusing resources in Africa and the Middle East towards larger markets like Saudi Arabia and Egypt, while exiting seven smaller markets [7] - A new client segment, Ventures, has been introduced to consolidate digital banking initiatives, with plans for further updates on digital initiatives [9] - The company aims to achieve at least a 10% return on tangible equity by 2024, with ongoing efforts to optimize risk-weighted assets [2][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging environment, citing strong financial performance and resilience despite geopolitical tensions and inflation [12][14] - The outlook for income growth in 2022 is expected to slightly exceed the previously guided range of 5% to 7% due to strong Q1 performance and rising interest rates [29][45] - Management remains cautious about the wealth management segment due to ongoing market challenges, particularly in China [29][60] Other Important Information - The company is approximately 80% through its $750 million share buyback program, targeting total shareholder returns exceeding $5 billion over the next three years [6] - A three-year $1.3 billion expense reduction program is underway, with $72 million in gross structural savings achieved in Q1 [5][35] - The company remains committed to achieving net zero in financed emissions by 2050, with specific targets for coal financing and oil and gas emissions [10][11] Q&A Session Summary Question: Potential for Reloading Buyback - Management indicated that the strong capital position and progress on risk-weighted assets may allow for a reload on the buyback at mid-year, depending on opportunities [48][50] Question: Revenue and Margin Guidance - Management acknowledged the potential for revenue upgrades but maintained a cautious outlook due to global uncertainties, emphasizing the importance of monitoring economic conditions [52][54] Question: Revenue Expectations and Currency Adjustments - Management suggested that revenue expectations should consider the previous year's performance, with currency effects generally offsetting each other [65][68] Question: Permanence of Risk-Weighted Asset Gains - Management expressed confidence in the sustainability of risk-weighted asset optimization efforts, although they acknowledged potential risks from the China real estate sector [70][74] Question: Loan Growth and RWA Control - Management indicated that loan growth is expected to be in the low to mid-single-digit range, with RWA control remaining a priority [78][80] Question: Credit Quality Concerns - Management reassured that they are closely monitoring credit quality, particularly in China, and feel appropriately provisioned against risks [84][87]

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]