Business
Presentation of Financial Information
Presentation of Financial Information.
About this update from Standard Chartered Plc
[{"type":"text","content":"\n\n \nSTANDARD CHARTERED PLC\nPRESENTATION OF FINANCIAL INFORMATION\n25th July 2023\n \nStandard Chartered PLC (the Group) is reclassifying certain interest expenses and fees between Net Interest Income and Other Income to align with the way it manages its business and the basis on which it already calculates Net Interest Margin; there is no change to total Underlying Income.\n \nThe interest expense associated with funding the trading book will in future be deducted from Other Income rather than Net Interest Income. Recent rises in interest rates have materially increased the size of this adjustment, up from $462 million in 2022 to a guided $1.7 billion in 2023, making a change in definition more appropriate than continuous adjustment.\n \nAnd financial guarantee fees in relation to interest-earning assets will in future be reported in Underlying Net Interest Income rather than within Underlying Other Income.\n \nThese changes will mean that the Group's Underlying Net Interest Income can be derived simply from the Net Interest Margin and balance sheet amounts without the need for further adjustments.\n \nThese adjustments will not be made for the purposes of the statutory Net Interest Income and statutory Other Income disclosures. \n \nThe table below reconciles the Group's revised Underlying Net Interest Income and Underlying Other Income on the new basis of preparation from the previously reported disclosures.\n \n \n\n\n \n \n \n\n\n\n\n\n\n\n\n\n2Q'22\n\n\n \n\n\n1H'22\n\n\n \n\n\nFY'22\n\n\n \n\n\n1Q'23\n\n\n\n\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nOld Definition of Underlying Net Interest Income\n\n\n \n\n\n1,852\n\n\n \n\n\n3,635\n\n\n \n\n\n7,584\n\n\n \n\n\n2,007\n\n\n\n\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nTrading Book Funding Cost Adjustment\n\n\n\n\n\n65\n\n\n\n\n\n106\n\n\n\n\n\n463\n\n\n\n\n\n352\n\n\n\n\nFinancial guarantee fees in relation to interest-earning assets\n\n\n\n\n\n(27)\n\n\n\n\n\n(47)\n\n\n\n\n\n(80)\n\n\n\n\n\n(18)\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nRevised Definition of Underlying Net Interest Income\n\n\n \n\n\n1,890\n\n\n \n\n\n3,694\n\n\n \n\n\n7,967\n\n\n \n\n\n2,341\n\n\n\n\n\n\n\n...