Financial Performance - Standard Chartered PLC reported its annual results for the year ending December 31, 2024[3]. - Total revenue for the company reached 193.576 billion, with a decrease of 1.9% compared to the previous period[120]. - The company reported a total of HKD 124,501 million in revenue for 2023, with a credit impairment of HKD 2,358 million, reflecting a coverage ratio of 1.0%[124]. - Total revenue for 2024 reached HKD 118,398 million, with a credit impairment of HKD 1,953 million, reflecting a coverage ratio of 1.1%[121]. - The total balance sheet amount reached 1,055,148 million in 2023, indicating a growth of about 3.9%[100]. Risk Management - The company emphasized the importance of effective risk management as a core aspect of its banking operations[6]. - The enterprise risk management framework was reviewed and approved by the board annually, with the latest version effective from August 2024[6]. - The group employs a three lines of defense model for effective risk management and governance[11]. - The risk function oversees and challenges the group's risk management to ensure alignment with regulatory expectations[10]. - The group aims to balance risk and return to provide sustainable performance for stakeholders[6]. Credit Risk Management - The company conducts regular monitoring of credit risk, portfolio performance, and emerging risks, with reports submitted to the risk committee[35]. - The group considers expected credit impairment when debtors are overdue by more than 90 days or show signs of inability to fulfill credit obligations[42]. - The group employs a Value at Risk (VaR) model to quantify potential losses due to adverse market movements, calculated at a 97.5% confidence level for one business day[45]. - The group uses two VaR calculation methods: historical simulation and Monte Carlo simulation, with the latter capturing specific credit spread risk factors[45]. - The group has established a clear risk category framework to manage inherent risks within its strategic and business model[21]. Compliance and Regulatory Oversight - The group is actively monitoring regulatory developments and taking proactive compliance actions due to the changing regulatory environment[25]. - The group submitted a self-assessment report on resolvability to the Bank of England and the Prudential Regulation Authority, with a public disclosure scheduled for August 2024 as part of the second resolvability assessment framework cycle[56]. - The company implements policies and standards to mitigate compliance risks, ensuring adherence to legal regulations[70]. - The group conducts regular performance monitoring of model risks and reports results to relevant committees[78]. - The group is implementing a compliance roadmap in response to the evolving regulatory framework surrounding model risk management[77]. Credit Impairment and Losses - The credit impairment charge for the group was a net expense of 547 million (as of December 31, 2023: 508 million), with wealth management and retail banking generating a net expense of 644 million (as of December 31, 2023: 354 million)[94]. - The total credit impairment for the wealth management and retail banking business with collateral was 132,113 million as of December 31, 2023, a decrease of 574 million from the previous period[139]. - The total credit impairment for the unsecured wealth management and retail banking business was 61,619 million as of December 31, 2023, down by 650 million compared to the prior period[141]. - The overall credit impairment ratio was 1.7%, with Stage 1 at 0.2%, Stage 2 at 4.4%, and Stage 3 at 63.6%[111]. - The total credit impairment for 2024 is projected at 160,395 million, a decrease of 3,561 million compared to the previous year[178]. Asset Quality and Loan Performance - The total amount of loans classified as higher risk was HKD 1.833 billion, indicating a cautious approach to lending[117]. - The total amount of loans in the "satisfactory" category for 2024 is 50,594 million, with a credit impairment of 56 million[115]. - The total amount of customer loans classified as satisfactory was 510 million HKD in 2024, down from 997 million HKD in 2023, a decrease of about 48.8%[191]. - The average loan-to-value ratio for performing commercial real estate loans increased to 54% (as of December 31, 2023: 52%)[95]. - The total amount of loans and advances for commercial real estate in 2024 is 14,037 million, down from 14,533 million in 2023[189]. Strategic Initiatives and Future Outlook - The company plans to enhance market expansion strategies and invest in new technologies to drive future growth[112]. - The company is actively pursuing new product development in wealth management to cater to evolving customer needs and preferences[185]. - The group aims to enhance its risk management practices by improving non-financial risk management in its business and operational markets by 2025[25]. - The group is focused on integrating the enterprise risk management framework throughout the organization[28]. - The group aims to promote revenue growth while maintaining its risk appetite, with a structured risk appetite statement approved by the board[16].
渣打集团(02888) - 2024 - 年度业绩