Standard Chartered Plc · LSE:STAN
Standard Chartered — Bank of America Merrill Lynch 19th Annual Banking & Insurance CEO Conference 2014
23 slides from Standard Chartered's conference presentation, Oct 1, 2014
Slide 1: Bank of America Merrill Lynch 19th Annual Banking & Insurance CEO Conference
Bank of America Merrill Lynch 19th Annual Banking & Insurance CEO Conference 01 October 2014
Slide 2: Forward looking statement
Forward looking statement 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 Group’s businesses and the transactions described in t
Slide 3: Peter Sands, Group Chief Executive
Peter Sands Group Chief Executive
Slide 4: H1 2014 performance summary
H1 2014 performance summary US$m YoY $1 Income (482) H1 14 YoY%1 HoH%1 Financial Markets (432) Income US$ 9.3bn (5) 4 Korea (ex. Financial Markets) (170) Profit before tax US$ 3.3bn (20) 14 Profit before tax (820) Normalised earnings US$ 2.4bn (20) 18 Income drag from FM & Korea (602) Normalised ret
Slide 5: Group performance
Group performance US$m H1 13 H2 13 H1 14 YoY% Income 9,751 8,920 9,269 (5) Client income 8,648 8,224 8,373 (3) Own account income 1,103 696 896 (19) Expenses (5,034) (5,159) (5,083) (1) Working profit 4,717 3,761 4,186 (11) Loan impairment (730) (887) (846) (16) Other impairment (11) (118) (185) nm
Slide 6: Group balance sheet
Group balance sheet Total customer loans and advances Customer loans up 3% since year end Europe 14% Americas Greater China 4% 30% Africa 3% Supported client growth and financing MENAP needs 6% North East Asia 10% ASEAN 28% South Asia Continued to de-risk Retail unsecured In the Corporate and
Slide 7: Risk and Impairment
Risk and Impairment US$m H1 13 H2 13 H1 14 YoY % Small number of impaired accounts Corporate and Institutional (197) (291) (266) (35) Portfolio highly diversified Commercial clients (43) (114) (100) (133) Well collateralised and short tenor Private Banking clients (8) - - nm Broadly stable l
Slide 8: Capital - Basel III
Capital - Basel III Common Equity Tier 1 (CET1) % 0.3% 0.3% 0.2% 0.4% 0.7% 0.2% 0.1% 0.2% 0.2% 10.9% 10.7% 10.5% 10.3% CET1 B3 Model Foreseeable CET1 30 Jun Profit RWA Asset Credit Dividend Other CET1 B3 Net AFS CET1 B3 31 Dec 13 changes dividend B3 post Efficiencies Growth* migration (transitional)
Slide 9: Financial Markets
Financial Markets US$m H1 13 H2 13 H1 14 YoY% Notional volume increase % YoY Foreign Exchange 835 578 636 (24) Cash FX FX Options Rates 552 365 371 (33) Commodities and Equities 288 219 262 (9) 45 24 37 Capital Markets 283 275 284 0 21 Credit and Other 254 207 227 (11) FY 13 HY 14 FY 13 HY 14 Total
Slide 10: Korea
Korea US$m H1 13 H1 14 YoY% Strengthening offshore client support Income 898 669 (26) 2013 year end – 18 desks in 11 markets Expenses (549) (587) (7) H1 14 - added 3 desks in Hong Kong, Thailand & Vietnam H2 14 – to add 3 desks in US, UK and South Africa Working profit 349 82 (76) Total impairment (
Slide 11: Growth in our markets
Growth in our markets Global Financial Crisis Policy Driven Recovery 5 year forecast (2008-2010) (2010-2013) (2013-2018) 14.3% 14.2% 11.2% 10.8% 10.4% 10.1% 8.9% 8.0% 8.1% 8.3% 8.7% 8.3% 8.3% 6.9% 4.6% 8.5% 4.3% 3.5% 1.2% 5.3% 4.8% 4.8% 4.8% 4.9% 3.7% 4.2% 4.5% (0.3)% (4.5)% 2008 2009 2010 2011 2012
Slide 12: Our aspirations
Our aspirations Relationships ► Build trusted relationships with the people, companies and institutions shaping our markets’ future Investment ► Play a leading role in facilitating investment and deepening financial markets in our economies Trade ► Become the undisputed leader in commercial payment
Slide 13: Organisation structure
Organisation structure Peter Sands Group Chief Executive Geographies Clients and Products Functions Jaspal Bindra V. Shankar Mike Rees Andy Halford People, Compliance Greater China, ASEAN, MENAP, Africa, Europe, Deputy Group Chief Executive Group Finance Director and Communication North East Asia, S
Slide 14: Corporate and Institutional Clients
Corporate and Institutional Clients •US$m H1 13 H1 14 YoY% Redeploying RWA to improve profitability Income 5,577 5,334 (4) US$bn RWA redeployed Expenses (2,500) (2,546) (2) Working profit 3,077 2,788 (9) 8.8 Total impairment (225) (435) (93) 3.9 5.2 Profit from associates 79 90 14 3.5 Profit before
Slide 15: Market position
Market position Global market position and share (%) #1 Top 5 Transaction Syndicated Lead Banker across Asia Arranger – Asia #2 and Africa #7 10% #1 9% in Corporate Derivatives in #2 Asia 6% #2 Project Finance #2 House In Asia for FICC Source: Coalition Trade US$ Clearing Offshore RMB Source: Market
Slide 16: Organisation structure
Organisation structure Peter Sands Group Chief Executive Geographies Clients and Products Functions Jaspal Bindra V. Shankar Mike Rees Andy Halford People, Compliance Greater China, ASEAN, MENAP, Africa, Europe, Deputy Group Chief Executive Group Finance Director and Communication North East Asia, S
Slide 17: Commercial Clients
Commercial Clients US$m H1 13 H1 14 YoY% Income 812 616 (24) Expenses (374) (362) 3 YoY $ Working profit 438 254 (42) Profit change (261) Total impairment (29) (100) (245) Principal Finance (107) Profit from associates 17 11 (35) Financial Markets (51) Profit before tax 426 165 (61) Loan impairment
Slide 18: Private Banking Clients
Private Banking Clients US$m H1 13 H1 14 YoY% Private Banking Income 301 314 4 Consumer AUM - US$bn Net new money - US$bn Expenses (213) (227) (7) Working profit 88 87 (1) +13% +15% 61 1.5 Total impairment (8) (16) (100) 54 1.3 Profit from associates 1 - nm Profit before tax 81 71 (12) H1 13 H1 14 H
Slide 19: Organisation structure
Organisation structure Peter Sands Group Chief Executive Geographies Clients and Products Functions Jaspal Bindra V. Shankar Mike Rees Andy Halford People, Compliance Greater China, ASEAN, MENAP, Africa, Europe, Deputy Group Chief Executive Group Finance Director and Communication North East Asia, S
Slide 20: Retail Clients
Retail Clients US$m H1 13 H1 14 YoY% Retail clients profit before tax ex. Korea (US$m) Income 3,061 3,005 (2) +12% Expenses (1,947) (1,948) 0 737 657 Working profit 1,114 1,057 (5) Total impairment (479) (480) 0 Profit from associates 15 12 (20) Profit before tax 650 589 (9) H1 2013 H1 2014 Strong
Slide 21: Making the strategy happen
Making the strategy happen Execution in H1 2014 - Examples Set out 5 strategic aspirations – relationships, investment, trade, “We bank the people and wealth and relevant scale Implemented far-reaching reorganisation companies driving investment, Aligned the group to the strategic priorities
Slide 22: Summary
Summary External environment remains challenging Momentum ahead of the second half last year Financial Markets remains uncertain Managing costs and risks tightly Continue to be: Well capitalised Highly liquid Diverse
Slide 23: Q&A
Standard @& Chartered &Q Q&A Here for good