Slide 1: Interim Results 2008
Interim Results 2008 Leading the way in Asia, Africa and the Middle East 1
Slide 2: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Mervyn Davies Chairman 2
Slide 3: Performance highlights
Performance highlights Income US$6.99bn 33% Operating profit before tax US$2.59bn 31% Normalised EPS 120.4c 20% Dividend (per share) 25.67c 11% 3
Slide 4: A different bank
A different bank Strong and sustainable business Clear and consistent strategy Resilient in difficult times 4
Slide 5: Summary
Standard Summary Chartered SQ
Slide 6: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Richard Meddings Group Finance Director 6
Slide 7: Group performance
Group performance US$m H1 2007 H2 2007 H1 2008 YOY % Income 5,263 5,804 6,987 33 Expenses (2,918) (3,297) (3,900) 34 Operating profit before provisions 2,345 2,507 3,087 32 Loan impairment (361) (400) (465) 29 Other impairment (3) (54) (26) (Loss)/profit from associates (1) 2 (10) Profit before tax
Slide 8: Underlying Group performance
Underlying Group performance* US$m H1 2007 H2 2007 H1 2008 YOY % Income 5,263 5,804 6,722 28 Expenses (2,918) (3,297) (3,637) 25 Operating profit before provisions 2,345 2,507 3,085 32 Loan impairment (361) (400) (454) 26 Other impairment and losses (4) (52) (31) Operating profit before tax 1,980 2,
Slide 9: Sources of income growth
Sources of income growth US$m 265 6,987 405 142 6,987 1,459 1,177 5,263 5,263 H1 Organic Inorganic H1 H1 Wholesale Consumer Corporate H1 2007 2008 2007 Banking Banking items not 2008 allocated 9
Slide 10: Performance by geography
Performance by geography Profit before tax US$m H1 2007 H2 2007 H1 2008 YOY % Hong Kong 514 679 656 28 Singapore 205 241 317 55 Malaysia 97 139 152 57 Korea 195 129 209 7 Other APR 281 291 353 26 India 320 370 606 89 MESA 289 302 386 34 Africa 111 187 157 41 Americas, UK & Group (32) (283) (250) nm
Slide 11: Consumer Banking performance
Consumer Banking performance Underlying US$m H1 2007 H1 2008 YOY % YOY %* Income 2,772 3,177 15 10 Expenses (1,612) (1,961) 22 12 Operating profit before impairment 1,160 1,216 5 7 Loan impairment (372) (412) 11 8 Other impairment 0 (2) Operating profit 788 802 2 7 *excludes American Express Bank 11
Slide 12: Consumer Banking income
Consumer Banking income US$m H1 2007 H2 2007 H1 2008 YOY % Hong Kong 545 643 628 15 Singapore 206 265 298 45 Malaysia 129 145 133 3 Korea 607 535 605 0 Other APR 564 603 611 8 India 184 224 249 35 MESA 352 399 355 1 Africa 140 170 172 23 Americas, UK & Group 45 50 126 180 Total 2,772 3,034 3,177 15
Slide 13: Underlying Consumer Banking expenses
Underlying Consumer Banking expenses* US$m 1,781 1,798 Up 12% 1,612 Components of expense growth (%) 8 Investment for future growth 3 Regulatory/Control 1 BAU/Volume 12 H1 2007 H2 2007 H1 2008 *excludes American Express Bank 13
Slide 14: Consumer Banking loan impairment
Consumer Banking loan impairment US$m H1 2007 H2 2007 H1 2008 YOY % Individual impairment provision (396) (381) (416) 5 Portfolio impairment provision 24 17 4 (83) Total impairment charge (372) (364) (412) 11 Loans and advances to customers (US$bn) 79.5 82.3 84.4 6 14
Slide 15: Wholesale Banking performance
Wholesale Banking performance Underlying US$m H1 2007 H1 2008 YOY % YOY %* Income 2,487 3,664 47 42 Expenses (1,298) (1,939) 49 42 Operating profit before impairment 1,189 1,725 45 43 Loan impairment 11 (53) Other impairment (3) (24) Operating profit 1,197 1,648 38 35 *excludes American Express Bank
Slide 16: Wholesale Banking income
Wholesale Banking income Client income growth Income growth by segment (%) by product (%) Commodity Traders 51 Trade & Lending 35 Cash Management Global Corporates 31 28 & Custody Financial Institutions 50 Global Markets 61 Local Corporates 44 16
Slide 17: Underlying Wholesale Banking expenses
Underlying Wholesale Banking expenses* US$m 1,839 Up 42% 1,516 Components of 1,298 expense growth (%) 2 Investment for future growth 6 Regulatory/Control 34 BAU/Volume 42 H1 2007 H2 2007 H1 2008 *excludes American Express Bank 17
Slide 18: Wholesale Banking loan impairment
Wholesale Banking loan impairment US$m H1 2007 H2 2007 H1 2008 YOY % Specific impairment provisions (38) (56) (63) 66 Recoveries 55 40 32 (42) Portfolio impairment provisions (6) (20) (22) Total net release/(charge) 11 (36) (53) Loans and advances to 73.8 75.3 93.4 27 customers (US$bn)* *before port
Slide 19: Korea
Korea constant currency US$m H1 2007 H1 2008 YOY% YOY% Income 801 867 8 14 Expenses (560) (568) 1 7 Loan impairment (46) (90) 96 107 Operating profit before tax 195 209 7 13 19
Slide 20: American Express Bank
American Express Bank H1 2008 Performance* US$m CB WB Total Income 135 130 265 Expenses (123) (75) (198) Loan/other impairment (13) (3) (16) Profit pre integration expense (1) 52 51 Integration Expense (40) (25) (65) Profit before tax (41) 27 (14) *Performance reflects ownership of American Express
Slide 21: Group balance sheet
Group balance sheet H1 H2 H1 US$bn 2007 2007 2008 YOY % Customer loans 151.9 154.3 174.7 15 Customer deposits 160.2 179.8 205.5 28 Customer loans to deposits % 95 86 85 21
Slide 22: Exposure to Asset Backed Securities
Exposure to Asset Backed Securities Carrying Notional Notional Value US$ m Dec 2007 Jun 2008 Jun 2008 RMBS US Sub-prime 0 0 0 US Alt A 96 89 59 US Prime 2 2 2 UK/Other 1,825 1,562 1,499 CDOs ABS 291 264 79 Other CDOs 418 394 335 CMBS US CMBS 159 150 132 Other CMBS 980 904 796 Other ABS 2,085 2,221 2
Slide 23: Risk Weighted Assets
Risk Weighted Assets US$ bn US$ bn 204 204 185 18 185 172 14 12 172 8 8 148 Basel II Basel II 108 132 164 163 174 64 53 56 0 0 Dec 2007 Dec 2007 Jun 2008 Dec 2007 Dec 2007 Jun 2008 Credit Market Operational Consumer Wholesale risk risk risk Banking Banking 23
Slide 24: Capital management
Capital management % 16.7 15.2 14.9 6.9 6.4 6.4 Basel II 2.6 2.2 2.4 Tier 1 Tier 1 Tier 1 7.2 9.8 8.8 8.5 6.6 6.1 0 Dec 2007 Dec 2007 Jun 2008 Core Tier 1 Tier 2 and 3 24
Slide 25: Core Tier 1
Core Tier 1 % 7.2 6.6 6.1 6.2 AEB 6.1 Basel II 0 Dec 2005 Dec 2006 Dec 2007 Dec 2007 Jun 2008 25
Slide 26: Outlook for 2008
Outlook for 2008 Excellent momentum across multiple businesses and geographies Outlook remains uncertain Well positioned to capture opportunities 26
Slide 27: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Peter Sands Group Chief Executive 27
Slide 28: Growth foundations
Growth foundations Clear consistent strategy Focus on the basics - liquidity, capital, risks and costs Distinctive culture and values 28
Slide 29: External environment
External environment Inflation % 2008F* 2009F* China 6.5 3.0 India 10.9 3.6 Korea 4.7 3.1 Hong Kong 5.2 2.9 Singapore 6.2 4.0 Malaysia 4.5 4.0 Indonesia 9.3 7.8 Vietnam 23.0 9.5 Taiwan 2.9 2.5 Thailand 6.4 3.8 US 2.0 1.8 UK 3.1 2.3 Eurozone 3.4 2.4 Japan 1.2 0.9 Source: *Standard Chartered forecasts
Slide 30: Asian growth forecast
Asian growth forecast GDP % 2007 2008F* 2009F* China 11.9 9.9 8.6 India 9.0 7.4 8.5 Korea 5.0 4.5 5.0 Hong Kong 6.4 4.6 5.0 Singapore 7.7 3.5 4.0 Malaysia 6.3 4.8 4.0 Indonesia 6.3 6.0 6.2 Vietnam 8.5 6.7 6.0 Taiwan 5.7 3.5 4.8 Thailand 4.8 4.7 4.5 UAE 7.4 6.5 6.0 Nigeria 6.5 9.5 10.0 US 2.2 1.2 1.0
Slide 31: Investment
Investment Investing for future growth Reinvesting returns, accelerating revenue growth Pacing investment in line with income growth 31
Slide 32: Wholesale Banking
Wholesale Banking Giangare S
Slide 33: The Private Bank
The Private Bank Giangare S The Standard Chartered Private Bank
Slide 34: China
Standard Chartered &Q Standard Chartered aa SQ FTIR (PE) APRA fet Saas Saan oaoge Syeess SSS5 SEEE UnionPa HR rad
Slide 35: Summary
Standard Su m mary Chartered