Slide 1: Full year results 2011
Full year results 2011 Leading the way in Asia, Africa and the Middle East
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 Group’s businesses and the transactions described in
Slide 3: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Sir John Peace Chairman 3
Slide 4: Performance highlights
Performance highlights Income US$17.64bn 10% Profit before tax US$6.78bn 11% Dividend (per share) 76c 10% Core Tier 1 capital 11.8% 4
Slide 5: Consistent delivery
Consistent delivery Income Tier 1 capital Customer loans and advances US$bn US$bn US$bn 15% 24% 37.0 14% 269 17.6 8.6 140 12.7 Profit before tax Normalised EPS Staff US$bn cents 16% 7% 6% 6.8 86,865 198 66,205** 144* 3.2 2006 2011 5 year CAGR * Rights adjusted ** Like for like classification 5
Slide 6: Confident start to 2012
Confident start to 2012 Standard Chartered &
Slide 7: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Richard Meddings Group Finance Director 7
Slide 8: Key highlights
Key highlights Ninth consecutive year of record income and profit Double digit growth in income and profit Strong cost control, with neutral cost income jaws, despite continued investment in both businesses Balance sheet remains in excellent shape; highly liquid, strongly capitalised and wel
Slide 9: Final outcome against pre-close guidance
Final outcome against pre-close guidance Strong December performance Early Retirement Programme in Korea UK bank levy Loan impairment Effective tax rate 9
Slide 10: Group performance
Group performance US$m 2010 2011 YOY % Income 16,062 17,637 10 Net interest income 8,470 10,153 20 Non interest income 7,592 7,484 (1) Expenses (9,023) (9,917) 10 Operating profit before impairment 7,039 7,720 10 Loan impairment (883) (908) 3 Other impairment (76) (111) 46 Profit from associates 42
Slide 11: Diversity a differentiator
Diversity a differentiator Operating income Operating income by product by geography Principal Finance Americas, 2% UK & Europe 10% Hong Kong Corporate Finance 11% 14% CCPL* 17% Africa 8% ALM 5% Wealth 7% Credit and Other 1% Management Capital Markets 3% Commodities Consumer Singapore and Equities 3
Slide 12: Performance metrics
Performance metrics Excluding Including UK bank levy UK bank levy 2010 2011 YOY % 2011 YOY % Profit before tax (US$m) 6,122 6,940 13 6,775 11 Normalised EPS (cents)* 197 205 4 198 1 Normalised ROE (%) 14.1 12.6 12.2 Jaws (%) 2 0 * Rights issue adjusted 12
Slide 13: Group balance sheet - liabilities
Group balance sheet - liabilities Total deposits* US$bn Deposit funded franchise 31% 388 346 6 296 5 Other 5 193 deposits 163 134 Time Net interbank lender and deposits US$165bn of liquid assets 157 178 189 CASA** 2009 2010 2011 Minimal refinancing requirements, US$4bn through to the end of 20
Slide 14: Group balance sheet – assets
Group balance sheet – assets Loan portfolio distribution* Well diversified Americas, 19% Hong Kong UK & Europe 17% Africa 2% 83% of Consumer MESA 7% 18% Singapore Banking portfolio fully or India 4% partially secured Other APR 19% 14% Korea 64% of Wholesale Banking loans less than 1 year matur
Slide 15: Continued capital generation
Continued capital generation Capital ratios % RWA US$bn 262 271 18.4 17.9 17.6 245 21 234 19 15.5 16 29 15.1 4.4 4.0 3.9 17 27 29 27 4.3 2.2 2.0 1.9 6.6 2.2 2.4 Tier 1 202 214 221 13.7 190 11.8 11.9 11.8 9.0 6.1 H1 08 H1 10 H2 10 H1 11 H2 11 H1 10 H2 10 H1 11 H2 11 Core Tier 1 Tier 2 and Tier 3 Cred
Slide 16: Consumer Banking performance
Consumer Banking performance US$m 2010 H1 11 H2 11 2011 YOY % Income 6,079 3,337 3,454 6,791 12 Expenses (4,176) (2,109) (2,496) (4,605) 10 Operating profit before impairment 1,903 1,228 958 2,186 15 Loan impairment (578) (211) (313) (524) (9) Other impairment (12) (4) (8) (12) 0 Operating profit 1,
Slide 17: Consumer Banking income
Consumer Banking income FY 11 vs FY 10 H2 11 vs H1 11 Mortgages -2% -3% -2% -5% -30 bps -10 bps Deposits 17% 4% 6% 1% 7 bps 3 bps Wealth Management 12% -6% -5% -13% Change in income Change in footings* Change in margin * For Mortgages footings are loans to customers, for Deposits, deposits only, and
Slide 18: Consumer Banking income continued
Consumer Banking income continued FY 11 vs FY 10 H2 11 vs H1 11 CCPL 18% 11% 17% 6% -14 bps 13 bps SME 14% 7% 3% -2% -7 bps 7 bps Change in income Change in footings* Change in margin * For CCPL footings are loans to customers and for SME loans to customers and deposits combined 18
Slide 19: Consumer Banking loan impairment trend
Consumer Banking loan impairment trend FY 10 H1 11 H2 11 FY 11 Mortgages LI/ANR 0.07% 0.04% 0.03% 0.03% 30dpd/ENR 0.61% 0.60% 0.67% 0.67% Loan book (US$bn) 71 73 70 70 LI (US$m) 49 13 10 23 SME LI/ANR 0.66% 0.40% 0.60% 0.52% 90dpd/ENR 0.72% 0.58% 0.57% 0.57% Loan book (US$bn) 17 20 19 19 LI (US$m) 1
Slide 20: Wholesale Banking performance
Wholesale Banking performance US$m 2010 H1 11 H2 11 2011 YOY % Income 9,979 5,427 5,419 10,846 9 Expenses (4,840) (2,568) (2,579) (5,147) 6 Operating profit before impairment 5,139 2,859 2,840 5,699 11 Loan impairment (305) (201) (183) (384) 26 Other impairment (64) (68) (31) (99) 55 Operating profi
Slide 21: Diversified income streams
Diversified income streams Total income by product US$m 2010 H1 11 H2 11 2011 YOY % Lending & Portfolio Mgt 868 435 406 841 (3) Transaction Banking 2,770 1,552 1,695 3,247 17 Trade 1,467 767 828 1,595 9 Cash Mgt & Custody 1,303 785 867 1,652 27 Global Markets 6,341 3,440 3,318 6,758 7 Financial Mark
Slide 22: Wholesale Banking Financial Markets
Wholesale Banking Financial Markets Total income by product US$m 2010 H1 11 H2 11 2011 YOY % Foreign Exchange 1,200 769 665 1,434 20 Rates 837 450 443 893 7 Commodities and Equities 411 319 284 603 47 Capital Markets 541 271 277 548 1 Credit and Other 314 142 68 210 (33) Total Financial Markets 3,30
Slide 23: Wholesale Banking impairment
Wholesale Banking impairment US$m 2010 H1 11 H2 11 2011 YOY % Loan impairment (305) (201) (183) (384) 26 Other impairment (64) (68) (31) (99) 55 Total impairment (369) (269) (214) (483) 31 Loans and advances to customers (US$bn)* 130.0 142.7 147.3 147.3 13 Gross non-performing loans 3,458 3,398 3,08
Slide 24: Performance by geography
Performance by geography Income Profit US$m 2010 2011 YOY % 2010 2011 YOY % Hong Kong 2,500 3,049 22 1,103 1,551 41 Singapore 1,738 2,186 26 718 1,002 40 Korea 1,698 1,718 1 388 172 (56) Other APR 3,165 3,553 12 1,083 1,447 34 India 2,028 1,805 (11) 1,197 804 (33) MESA 2,167 2,219 2 841 834 (1) Afri
Slide 25: Outlook
Outlook 2012 has started strongly Good momentum in both Consumer Banking and Wholesale Banking Remain focused on balance sheet foundations Well positioned in growth markets 25
Slide 26: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Peter Sands Group Chief Executive 26
Slide 27: Consistent delivery
Consistent delivery US$bn 20 CAGR 16% 15 CAGR 21% 10 5 0 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 Income Profit before tax 27
Slide 28: Macro outlook
Macro outlook GDP growth (%) 2011 2012F 2013F 2014F China 9.2 8.1 8.7 7.0 India* 7.0 7.4 8.0 8.0 Hong Kong 5.0 2.9 5.6 4.5 Indonesia 6.5 5.8 6.5 6.8 Singapore 4.9 1.9 7.8 4.4 Eurozone 1.5 -1.5 1.5 2.4 US 1.7 1.7 2.5 3.0 Sources: Standard Chartered Research, 17th February 2012 * India fiscal year end
Slide 29: The shift in economic power
The shift in economic power The growing share of the emerging economies Nominal GDP, US$tn 70 World 60 Advanced 50 Emerging 40 30 20 10 0 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Sources: Standard Chartered Research, Global Focus - 2012 29
Slide 30: A fragile financial system
A fragile financial system 30
Slide 31: Turning turmoil to our advantage
Turning turmoil to our advantage Growth in 2011 vs activity levels* 2010 % Cash 25 Trade 25 Flow FX 14 Commodities 96 Corporate Finance 15 CCPL 17 * Cash and Trade average balances, Flow FX notionals, Commodities confirmation volumes, Corporate Finance number of deals, CCPL period end balances 31
Slide 32: Supporting our customers
Supporting our customers Customer loans and advances Customer deposits US$m US$m CAGR 450 CAGR 300 14% 19% 300 150 150 0 0 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 Our profits increased by 113% over the same period 32
Slide 33: Why we are different
i Standard Why we are different Chattered
Slide 34: Korea
Korea A challenging year Tackling cost base Rebranded to Standard Chartered Bank Korea Will resume growth path in 2012 34
Slide 35: India
India External headwinds Weak business sentiment Fundamentals intact Cautious optimism for 2012 35
Slide 36: Greater China
Greater China Profit by market 2011 US$m 2010 223 China 99% 112 342* Taiwan 44% 238 Hong 1,551 Kong 41% 1,103 * Including recovery on structured notes Note: Greater China is Hong Kong, Taiwan and mainland China 36
Slide 37: Singapore
Singapore US$bn 26% 2.5 2.0 1.5 40% 1.0 0.5 0 Profit before tax Income FY 10 FY 11 37
Slide 38: ASEAN
ASEAN 2011 GDP US$tn 7.0 Our ASEAN markets Other ASEAN 2.5 2.2 1.9 1.8 ASEAN Income US$4.2bn 21% Profit US$1.9bn 32% India Russia ASEAN Brazil China 38
Slide 39: Diversified growth
Diversified growth 2011 vs Income 2010 % Bangladesh 16 Botswana 23 Indonesia* 24 Malaysia 11 Pakistan 13 Tanzania 17 Thailand 16 Uganda 11 Americas, UK & Europe 16 * Includes Permata 39
Slide 40: Summary
Standard Summary Chartered S$