Standard Chartered Plc · LSE:STAN
Standard Chartered — Investor Day (November 2019)
41 slides from Standard Chartered's investor day presentation, Nov 27, 2019
Slide 1: Investor Seminar Africa & Middle East
Investor Seminar Africa & Middle East 27 November 2019
Slide 2: Agenda
Agenda Webcast session Bill Winters Group Chief Executive Sunil Kaushal Regional CEO Rola Abu Manneh CEO, UAE Mohamed A. Bary Regional CFO Ian Bryden Regional CRO Non-webcast focus areas: Razia Khan Regional Chief Economist The macroeconomic Abbas Husain Head of Project & Export Finance, MENAP backd
Slide 3: Group Chief Executive Bill Winters
Group Chief Executive Bill Winters 2
Slide 4: Our Africa & Middle East franchise is central to the Group's overall investment case
Our Africa & Middle East franchise is central to the Group’s overall investment case We are making good progress executing the Group’s strategy • Our turnaround in recent years has created a stronger and more resilient business, with a better focus on its clients • The disciplined execution of that
Slide 5: Sunil Kaushal, Rola Abu Manneh, Mohamed A. Bary, Ian Bryden
Sunil Kaushal Rola Abu Manneh Mohamed A. Bary Ian Bryden Regional CEO CEO, UAE Regional CFO Regional CRO 4
Slide 6: What you will hear today
What you will hear today Our broad and The macro- Digitisation and We are making deep-rooted economic partnerships will good progress in presence backdrop supports transform our executing our differentiates us long-term Retail Banking strategic priorities structural growth franchise 5
Slide 7: We have a deep-rooted and distinctive franchise in Africa & Middle East
We have a deep-rooted and distinctive franchise in Africa & Middle East A trusted and respected business with differentiated product capabilities across 25 markets The AME region in 20191 contributed: 17% of the Group’s income 7 of its 20 highest income markets and 15% of the Group’s profits and 8 o
Slide 8: We have the experience required to manage inherent risks
We have the experience required to manage inherent risks Our understanding of the risks in the AME region gives us a competitive advantage Perceived risks high relative to other regions… …mitigated by our deep local knowledge • Challenging macroeconomic outlook • The first bank in some AME markets..
Slide 9: The macroeconomic backdrop supports long-term structural growth
The macroeconomic backdrop supports long-term structural growth Regional headwinds recently; but demographics, urbanisation and infrastructure demand should support growth • By 2050 AME will be home to around 3.4bn people – likely to be more than China and India combined • Africa will have the large
Slide 10: We have built a stable platform in Africa & Middle East
We have built a stable platform in Africa & Middle East Actions taken between 2015 to 2018 to secure our foundations have resulted in a leaner and more resilient business • Income broadly flat on a constant currency basis1, with underlying growth masked by de-risking • Deliberate de-risking actions
Slide 11: We are executing the strategic priorities
We are executing the strategic priorities The Africa & Middle East region has a key role to play in delivering the Group’s strategic priorities We are actively embracing The region contributes to and benefits digitisation and partnerships to from the global network, and we have reinforce competitive
Slide 12: Our non-replicable network capabilities continue to generate income growth at premium returns
Our non-replicable network capabilities continue to generate income growth at premium returns Network Affluent Productivity Digital Optimise Purpose The breadth of our CIB network across 25 markets creates multiple opportunities to grow Monetising the network 9M YoY1 • 80% of our top Corporate & Ins
Slide 13: We are investing to reinforce our differentiated affluent franchise in the region
We are investing to reinforce our differentiated affluent franchise in the region Network Affluent Productivity Digital Optimise Purpose The affluent segment in AME is smaller than in most of our other regions, but we are leading its development 9M YoY Lead in wealth and bancassurance solutions Mark
Slide 14: We are driving operational improvements to scale revenue and improve efficiency
We are driving operational improvements to scale revenue and improve efficiency Network Affluent Productivity Digital Optimise Purpose Creating room for investment through cost efficiencies and digitisation Clients 9M YoY Retail Banking digital sales 4 10 42 +4x (%)1 Corporate & Institutional 13 Rec
Slide 15: We are executing multiple exciting digital initiatives to transform our business
We are executing multiple exciting digital initiatives to transform our business Network Affluent Productivity Digital Optimise Purpose The rapid roll-out of our digital bank proposition in Africa is delivering encouraging early results Accelerated digital bank roll-out 9M YoY • Successful launch of
Slide 16: The UAE despite challenges remains an attractive market for us
The UAE despite challenges remains an attractive market for us Network Affluent Productivity Digital Optimise Purpose Optimising performance in this large, profitable but competitive market is key to the region’s results overall … Opportunity Advantages Actions Opportunity Advantages Actions • 3rd
Slide 17: We aim to be the leading international bank in UAE
We aim to be the leading international bank in UAE, leveraging its position as a gateway to AME Network Affluent Productivity Digital Optimise Purpose … and we are executing clear priorities to improve returns, with positive early progress Opportunity Advantages Actions 2015-2018 2019-2021 CAGR obje
Slide 18: We want to make a difference in the World where it matters the most
We want to make a difference in the World where it matters the most Network Affluent Productivity Digital Optimise Purpose ~$2.4tn SDG1 investment gap in emerging and low income countries Sustainable Finance can be a key differentiator We are mobilising capital flows towards SDG goals Best Sustainab
Slide 19: We have made good progress in AME so far in 2019
We have made good progress in AME so far in 2019 Gaining operational traction despite challenges Driving further improvement in financial performance1 • Corporate & Institutional Banking performing well Income 5% • Multiple marquee deals across the region Costs Flat • Ambitious Retail Banking digiti
Slide 20: What we hope you heard today
What we hope you heard today Our broad and The macro- Digitisation and We are making deep-rooted economic partnerships will good progress in presence backdrop supports transform our executing our differentiates us long-term Retail Banking strategic priorities structural growth franchise 19
Slide 21: Supporting sustainable growth
Razia Khan Abbas Husain Neil Van Niekerk Abdoul Aziz Ba Supporting sustainable growth 20
Slide 22: Demographics and necessary investment in the region will drive further growth and development
Demographics and necessary investment in the region will drive further growth and development Opportunity Advantages Actions Favourable demographics … … but investment is required to fund development Growing workforce1 Global competitiveness (xxx/137): Quality of Infrastructure3 Working age populati
Slide 23: We have unparalleled depth of local relationships, understanding of risks and access to governments
We have unparalleled depth of local relationships, understanding of risks and access to governments Opportunity Advantages Actions Trusted public sector relationships … … combined with world-class structuring capabilities Confidential Regional Federal Republic of Republic of Ghana Zambia Development
Slide 24: We are determined to be a force for good, contributing to sustainable economic growth
We are determined to be a force for good, contributing to sustainable economic growth Opportunity Advantages Actions Supporting impact-driven financing … … working with both private and public sector clients Catalysing sustainable finance where it matters the most • Structuring and financing sustain
Slide 25: Reinforcing our network advantage
Saif Malik Philip Panaino Reinforcing our network advantage 24
Slide 26: AME is becoming increasingly connected, both as a region and globally
AME is becoming increasingly connected, both as a region and globally Opportunity Advantages Actions Intra-regional trade is small but growing rapidly; and the structural ties with other regions are strengthening Greater China & 8% North Asia China Belt & Road Foreign Direct Europe & 13% • MSR and C
Slide 27: We have a unique physical network, and the region's leading DCM/Islamic franchise
We have a unique physical network, and the region’s leading DCM/Islamic franchise Opportunity Advantages Actions A respected presence across 25 AME markets … …with distinctive product capabilities HQ country SSA1 MENAP2 UK 15 10 Best Bank Best Bank Working Capital Belt & Road US 123 14 (Africa / Mid
Slide 28: We are leveraging our network advantage while focusing on selected client segments
We are leveraging our network advantage while focusing on selected client segments Opportunity Advantages Actions Our actions are driving prosperity, innovation, inclusion and growth across Africa & Middle East Growth in 20191 Return premium3 Main corridors Deliver 1. Europe & Americas AME to our Ne
Slide 29: Transforming Retail Banking
Jaydeep Gupta Yustus Aribariho Transforming Retail Banking 28
Slide 30: Demographics and technology will support rapid growth in retail banking
Demographics and technology will support rapid growth in retail banking Opportunity Advantages Actions Africa has a fast growing and profitable mass / mass affluent customer base that is relatively untapped 2nd fastest growing Retail Banking region globally Africa Massive Projected growth for Africa
Slide 31: We have the region's leading digital banking franchise
We have the region’s leading digital banking franchise… Opportunity Advantages Actions Our trusted brand and award-winning technology is a powerful combination Global network and full range of Respected products / and trusted solutions brand Best Consumer Best Innovative Investment Digital Bank Weal
Slide 32: We are investing to disrupt the mass affluent segment
… and we are investing to disrupt the mass affluent segment Opportunity Advantages Actions We aim to be the catalyst for retail transformation and better participation models… Double Improve Reduce Efficient Capture No. of clients client service cost of acquisition serve of mass Young demographic …
Slide 33: Biographies, definitions and notice on forward-looking statements
Investor Seminar Biographies, definitions and notice on forward- looking statements 32
Slide 34: Biographies
Biographies Sunil Kaushal is a member of the Group’s Management Team and has been the Regional CEO for AME since 2015. Prior to this, he was regional CEO South Asia, responsible for operations in markets including India, Bangladesh, Sri Lanka, and Nepal. Sunil has over 31 years of banking experience
Slide 35: Biographies
Biographies Rola Abu Manneh is the Chief Executive Officer of Standard Chartered Bank UAE, a role she has held since August 2018. She is the first Emirati woman to head a bank in the UAE. Before joining Standard Chartered Bank, Rola was the Head of Corporate & Investment Banking for Abu Dhabi at Fir
Slide 36: Biographies
Biographies Razia is Chief Economist for Africa and the Middle East, with over two decades of experience covering emerging and frontier markets. She is a well-known commentator on the region and provides regular updates to central banks, finance ministries, sovereign wealth funds, other institutiona
Slide 37: Biographies
Biographies Abbas is the Managing Director and Head of Standard Chartered Bank's Regional Project & Export Finance team in Dubai. His responsibilities include originating and executing project finance transactions located in the Middle East, North Africa, and Pakistan. Abbas has worked in finance fo
Slide 38: Biographies
Biographies Saif has over 18 years of experience working in all aspects of banking in Africa. He has held a number of senior roles since joining Standard Chartered in 2006 and has experience working in South Africa, Nigeria, Zambia and Tanzania. Saif was also the Head of the then Wholesale Banking b
Slide 39: Biographies
Biographies Jaydeep Gupta is the Regional Head of Retail Banking – Africa and Middle East at Standard Chartered Bank. Jaydeep has over 27 years of banking experience in diverse markets and has held various senior roles in Standard Chartered’ s Retail Banking business. He is a member of the Bank’s ma
Slide 40: Definitions
Definitions Term Explanation Term Explanation Term Explanation AME Africa & Middle East FTE Full-time employee PPT Percentage points API Application Programming Interface FX Foreign Exchange PvB Private Banking ASA ASEAN & South Asia FY Financial year QoQ Quarter-on-quarter AUM Assets under manageme
Slide 41: Important notice concerning forward-looking statements
Important notice concerning forward-looking statements This document contains or incorporates by reference “forward-looking statements” regarding the belief or current expectations of Standard Chartered PLC (the “Company”), the board of the Company (the “Directors”) and other members of its senior m