Slide 1: Interim results 2009
Interim results 2009 Leading the way in Asia, Africa and the Middle East 1
Slide 2: Forward looking statements
Forward looking statements This presentation contains or incorporates by reference ‘forward-looking statements’ regarding the belief or current expectations of Standard Chartered, the Directors and other members of its senior management about the Company’s businesses and the transactions described i
Slide 3: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East John Peace Chairman 3
Slide 4: Performance highlights
Performance highlights Income US$7.96bn 14% Operating profit before tax US$2.84bn 10% Normalised EPS 95.0c (10%) Dividend (per share) 21.23c 10% Core tier equity 7.6% 4
Slide 5: Hong Kong
Standard Hong Kong Chartered Chartered is proud to have been a part of Hong Kong's history hievements over the past 150 years. Ve look forward to furthering this special relationship with the people of Hong Kong with the same dedication and commitment. ~ We would like to thank our customers and frie
Slide 6: Leading the way: Group Finance Director
Leading the way in Asia, Africa and the Middle East Richard Meddings Group Finance Director 6
Slide 7: Key highlights
Key highlights Record performance Substantial income momentum Demonstrable cost control Impairments stabilising Reinforcing strong capital and liquidity foundations 7
Slide 8: Group performance
Group performance H1 H2 H1 US$m 2008 2008 2009 YOY % Income 6,987 6,981 7,960 14 Expenses (3,900) (3,711) (4,027) 3 Operating profit before impairment 3,087 3,270 3,933 27 Loan impairment (465) (856) (1,088) 134 Other impairment (26) (443) (15) (42) Profit/(loss) from associates (10) 11 8 nm Operati
Slide 9: Performance metrics
Performance metrics H1 H1 2008 2009 YOY % DPS (cents) 19.30* 21.23 10 Normalised EPS (cents) 105.4* 95.0 (10) Normalised ROE (%) 17.8 17.0 *Both dividend and earnings per share have been restated for the impact of the rights issue 9
Slide 10: Group balance sheet
Group balance sheet H1 H2 H1 2008 2008 2009 Customer deposits US$bn 210.8 238.6 236.0 A/D ratio %* 84.1 74.8 78.4 Liquidity ratio % 22.8 23.1 24.1 Total assets US$bn 396.8 435.1 411.2 *Ratio of customer loans to customer deposits 10
Slide 11: Proforma capital
Proforma capital 16.6 16 15.6 15.8 15.1 5.1 5.7 5.3 12 6.6 3.1 2.4 2.9 %8 2.4 Tier 1 Tier 1 Tier 1 Tier 1 11.5 9.9 10.5 4 8.5 7.5 7.6 8.4 6.1 0 H1 08 H2 08 H1 09 Proforma H1 09 Core Tier 1 Tier 2 and 3 11
Slide 12: Performance by geography
Performance by geography Profit before tax H1 H2 H1 H1 09 v H1 09 v US$m 2008 2008 2009 H1 08 % H2 08 % Hong Kong 656 358 576 (12) 61 Singapore 317 427 430 36 1 Korea 209 149 81 (61) (46) Other APR 505 193 416 (18) 116 India 606 337 526 (13) 56 MESA 386 350 220 (43) (37) Africa 157 155 265 69 71 Ame
Slide 13: Consumer Banking performance
Consumer Banking performance H1 H2 H1 H1 09 v H1 09 v US$m 2008 2008 2009 H1 08 % H2 08 % Income 3,177 2,775 2,685 (15) (3) Expenses (1,961) (1,882) (1,780) (9) (5) Operating profit before impairment 1,216 893 905 (26) 1 Loan impairment (412) (525) (563) 37 7 Other impairment (2) (54) 6 nm nm Operat
Slide 14: Consumer Banking expenses
Consumer Banking expenses US$m 2,000 1,961 1,900 1,882 (9%) 1,800 (18%) 1,780 1,700 PEM 170 1,610* 1,600 1,500 H1 2008 H2 2008 H1 2009 *Excludes one-off charge for buy back of structured notes issued by PEM Group in Taiwan 14
Slide 15: Consumer Banking loan impairment
Consumer Banking loan impairment H1 H2 H1 US$m 2008 2008 2009 YOY % Individual impairment provision (416) (482) (515) 24 Portfolio impairment provision 4 (43) (48) nm Total impairment charge (412) (525) (563) 37 15
Slide 16: Consumer Banking loan impairment trend
Consumer Banking loan impairment trend Q3 08 Q4 08 Q1 09 Q2 09 H1 09 Mortgages LI/ANR 0.00% 0.05% 0.13% 0.31% 0.22% 30dpd/ENR 1.20% 1.34% 1.22% 1.19% 1.19% Loan book (US$bn) 46 47 47 51 51 LI (US$m) 1 6 16 40 56 SME LI/ANR 1.21% 2.75% 2.31% 1.96% 2.13% 90dpd/ENR 2.06% 2.52% 2.54% 2.42% 2.42% Loan bo
Slide 17: Wholesale Banking performance
Wholesale Banking performance H1 H2 H1 H1 09 v H1 09 v US$m 2008 2008 2009 H1 08 % H2 08 % Income 3,664 3,825 5,027 37 31 Expenses (1,939) (1,829) (2,247) 16 23 Operating profit before impairment 1,725 1,996 2,780 61 39 Loan impairment (53) (331) (525) nm 59 Other impairment (24) (312) (6) (75) (98)
Slide 18: Wholesale Banking income
Wholesale Banking income Client income growth Income growth by segment (%) by product (%) Lending & portfolio Global Corporates 50 67 management Transaction Financial Institutions 10 2 banking Local Corporates 11 Global Markets 54 Commodity Traders 55 18
Slide 19: Diversified income streams
Diversified income streams Total income by product H1 H1 US$m 2008 2009 YOY % Lending & Portfolio Mgt 246 412 67 Transaction Banking 1,249 1,272 2 Trade 470 625 33 Cash Mgt & Custody 779 647 (17) Global Markets 2,169 3,343 54 Financial Markets 1,213 2,036 68 ALM 514 557 8 Corporate Finance 365 615 6
Slide 20: Wholesale Banking Financial Markets
Wholesale Banking Financial Markets Total income by product H1 H1 US$m 2008 2009 YOY % FX 716 831 16 Rates 334 573 72 Commodities and Equities 48 236 392 Capital Markets 118 226 92 Credit and Other (3) 170 nm Total Financial Markets 1,213 2,036 68 20
Slide 21: Wholesale Banking loan impairment
Wholesale Banking loan impairment H1 H2 H1 US$m 2008 2008 2009 YOY % Specific impairment provision (63) (331) (498) 690 Recoveries 32 57 19 (41) Portfolio impairment provision (22) (57) (46) 109 Total net charge (53) (331) (525) 891 Loans and advances to customers 93.4 98.5 101.2 8 (US$bn)* *Before
Slide 22: American Express Bank
American Express Bank H1 H2 H1 US$m 2008 2008 2009 YOY % Income 265 287 301 14 Expenses (198) (248) (195) (2) Loan/other impairment (16) (57) (16) 0 Profit pre integration expense 51 (18) 90 76 Integration expense (65) (92) (30) (54) Profit before tax (14) (110) 60 nm 22
Slide 23: Group balance sheet - liabilities
Group balance sheet - liabilities Deposits H1 H2 H1 H1 09 v H1 09 v US$bn 2008 2008 2009 H1 08% H2 08% CASA* 113.2 117.3 135.3 20 15 Time deposits 131.3 145.2 129.7 (1) (11) Other deposits 6.7 12.1 5.0 (25) (59) Total 251.2 274.6 270.0 7 (2) *CASA - Current and savings accounts 23
Slide 24: Group balance sheet - assets
Group balance sheet - assets H1 H2 H1 US$bn 2008 2008 2009 YOY % Consumer loans to customers 84.4 80.7 84.5 0 Wholesale loans to customers 93.4 98.5 101.2 8 Derivatives 42.8 69.7 45.8 7 Loans and advances to banks 49.2 46.6 45.4 (8) Assets held at fair value† 20.6 11.1 14.2 (31) Investment securitie
Slide 25: Summary
Summary Second half has started well Continued focus on foundations of banking Well positioned in the right markets 25
Slide 26: Leading the way: Group Chief Executive
Leading the way in Asia, Africa and the Middle East Peter Sands Group Chief Executive 26
Slide 27: Korea
Korea 27
Slide 28: Middle East and South Asia
Middle East and South Asia Chartered SS
Slide 29: Wealth Management and Deposits
Wealth Management and Deposits US$m 1,500 1,289 1,100 H1 08 H2 08 H1 09 Wealth Management Deposits 29
Slide 30: Consumer Banking strategy
Consumer Banking strategy Customer centric, shifting focus from products to customers Reinforce the basics of banking, standardising the way we work Participation models, optimising resource and leveraging competitive strength 30
Slide 31: Priority Banking
Priority Banking Youre ¥ connected globally We ensure your Money iS too PRIORITY Banking PRIORITY Banking | Your family “ means the world to you We give you < back to them Standard Ss PRIORITY Chartered &Q Banking WRAT'S YOU Standard Chartered & PRIORITY Banking Standard Chartered &Q
Slide 32: Wholesale Banking
Wholesale Banking Deep ‘core bank’ client relationships Strategic Value added Local scale and cross-border capabilities Transactional Basic lending Origination and distribution 32
Slide 33: Client relationships
Client relationships Income from top 50 clients Number of clients with (in US$) income greater than US$10m 67% 43% H1 08 H1 09* FY 08 FY 09* NOTE: *Based on straight line extrapolation of May 09 YTD data 33
Slide 34: Group strategy
Group strategy Disciplined execution of strategy Supporting clients’ needs Focused on the basics of banking Embedded values and culture 34
Slide 35: Rationale for placing
Rationale for placing Further strengthens an already strong balance sheet Reinforces distinctiveness and competitive edge Positions the Group to take advantage of opportunities 35
Slide 36: Outlook
Outlook GDP % 2008 2009F* 2010F* 2011F* China 9.0 8.5 8.9 8.1 India** 6.7 6.4 7.5 8.4 Korea 2.2 -2.5 2.6 4.1 Hong Kong 2.4 -3.4 4.0 4.5 Singapore 1.1 -4.9 4.4 5.0 Malaysia 4.6 -3.1 3.8 5.5 Indonesia 6.1 4.0 5.0 6.0 Vietnam 6.2 4.2 5.0 6.5 Taiwan 0.1 -5.0 3.1 3.5 Thailand 2.6 -3.5 1.5 4.1 Nigeria 6.4
Slide 37: Summary
Standard S Chartered &